Aylmer Corp has the following transactions relating to investments. Aylmer Corp has a December 31 year end. 01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share. 31-Oct-19 Belmont Inc paid dividends of $5.00 per share. 31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share. 31-Dec-19 Belmont Inc reported net income of $63,000 for the year. 01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share. Additional Information: Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments Dividend income is required to be recorded in a separate account. REQUIRED: Prepare the appropriate entries for the above transactions.
Aylmer Corp has the following transactions relating to investments. Aylmer Corp has a December 31 year end. 01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share. 31-Oct-19 Belmont Inc paid dividends of $5.00 per share. 31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share. 31-Dec-19 Belmont Inc reported net income of $63,000 for the year. 01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share. Additional Information: Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments Dividend income is required to be recorded in a separate account. REQUIRED: Prepare the appropriate entries for the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Looking for answer. Please include all the calculations for my reference. Thanks in advance.
Transcribed Image Text:Aylmer Corp has the following transactions relating to investments.
Aylmer Corp has a December 31 year end.
01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share.
31-Oct-19 Belmont Inc paid dividends of $5.00 per share.
31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share.
31-Dec-19 Belmont Inc reported net income of $63,000 for the year.
01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share.
Additional Information:
Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments.
Dividend income is required to be recorded in a separate account.
REQUIRED:
Prepare the appropriate entries for the above transactions.
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