Tamarisk Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order to
Question:
Tamarisk Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order to get a better return on some of its excess cash, Tamarisk purchased 150 common shares of AFS Corporation on July 1, 2020 at a price of $7 per share. Due to the nature of the investment Tamarisk’s management is accounting for the equity investment using the fair-value through other comprehensive income (FV-OCI) without recycling to net income. On August 1, 2020, AFS declared dividends of $1/share, and paid those dividends on August 20, 2020. On December 31, 2020, shares in AFS were trading at $9 per share. On September 15, 2021, Tamarisk sold the shares in AFS for $10 per share.
Prepare the journal entries required to record the above transactions on the books of Tamarisk Ltd.
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso