Thompson Inc. Panna Corporation Assets: Cash Accounts receivable Inventory Carrying Amount Carrying Fair value Amount $400,000...

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Thompson Inc. Panna Corporation Assets: Cash Accounts receivable Inventory Carrying Amount Carrying Fair value Amount $400,000 $10,000 $10,000 80,000 25,000 22,000 100,000 70,000 75,000 Plant 500,000 165,000 175,000 Patents 100,000 25,000 25,000 Trademarks 20,000 Goodwill 120,000 10,000 10,000 Total Assets 1,300,000 305,000 Liabilities and Equity: Current liabilities $160,000 55,000 60,000 Long-term liabilities 100,000 65,000 60,000 1 Common shares (At $10 per share) 1,000,000 100,000 Retained earnings 40,000 85,000 Total liabilities and equity 1,300,000 305,000 You, a CPA, CGA, the CFO of Thompson Inc., were asked by Mr. Thompson to give your opinion on the following different situations regarding the - Accounting requirements for the following investment proposals; and Presentation of Financial statement for each independent investment proposals of Mr. Thompson. Situations: I Suppose Thompson purchased 1,000 shares of Panna Corporation at $ 1.10 per share on January 1, 2018. Required: 1.Show the journal entry for this transaction in the book of Thompson; and (1) 2.present the balance sheet of Thompson Inc. after this investment on January 1, 2018. (4) Suppose Thompson purchased 4,000 shares of Panna Corporation by paying $ 4,500 cash in total on January 1, 2018. These shares are traded in Toronto Stock Exchange. Thompson Inc. gained significant influence over the investee (Panna Corporation) by this investment. Required: 1. Explain to Mr. Thompson the appropriate accounting method to be applied to record this transaction. (2) 2.Show the journal entry for this transaction in the book of Thompson on January 1, 2018. El Thompson Inc. Panna Corporation Assets: Cash Accounts receivable Inventory Carrying Amount Carrying Fair value Amount $400,000 $10,000 $10,000 80,000 25,000 22,000 100,000 70,000 75,000 Plant 500,000 165,000 175,000 Patents 100,000 25,000 25,000 Trademarks 20,000 Goodwill 120,000 10,000 10,000 Total Assets 1,300,000 305,000 Liabilities and Equity: Current liabilities $160,000 55,000 60,000 Long-term liabilities 100,000 65,000 60,000 1 Common shares (At $10 per share) 1,000,000 100,000 Retained earnings 40,000 85,000 Total liabilities and equity 1,300,000 305,000 You, a CPA, CGA, the CFO of Thompson Inc., were asked by Mr. Thompson to give your opinion on the following different situations regarding the - Accounting requirements for the following investment proposals; and Presentation of Financial statement for each independent investment proposals of Mr. Thompson. Situations: I Suppose Thompson purchased 1,000 shares of Panna Corporation at $ 1.10 per share on January 1, 2018. Required: 1.Show the journal entry for this transaction in the book of Thompson; and (1) 2.present the balance sheet of Thompson Inc. after this investment on January 1, 2018. (4) Suppose Thompson purchased 4,000 shares of Panna Corporation by paying $ 4,500 cash in total on January 1, 2018. These shares are traded in Toronto Stock Exchange. Thompson Inc. gained significant influence over the investee (Panna Corporation) by this investment. Required: 1. Explain to Mr. Thompson the appropriate accounting method to be applied to record this transaction. (2) 2.Show the journal entry for this transaction in the book of Thompson on January 1, 2018. El