On January 1, 2024, Waxwing Company acquired a portion of the common shares of Jenk Company. The

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On January 1, 2024, Waxwing Company acquired a portion of the common shares of Jenk Company. The data relating to the acquisition and the first year of operations are as follows:

Both companies close their books annually on December 31. The market value of Jenk Company shares on December 31, 2024, was $19.4 million.

Required
Prepare the journal entries (including for the acquisition) to account for Waxwing’s investment in Jenk during the year.

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Understanding Financial Accounting

ISBN: 9781119715474

3rd Canadian Edition

Authors: Christopher D. Burnley

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Question Posted: Jan 31, 2023 03:54 AM

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On January 1, 2024, Waxwing Company acquired a portion of the common shares of Jenk Company. The

Question:

Jenk Company Carrying Amount of Common Net Assets as Shares at Jan. 1, 2024 Acquired 35% $18,500,000 Market Value of Net Assets as at Jan. 1, 2024 $18,500,000 Net Acquisition Earnings Price for Year $6,475,000 $3,000,000 Dividends Declared and Paid for Year $1,250,000

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Understanding Financial Accounting

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