Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the fair value of the shares is $57 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet > 1 2 3 4 Record the investment in Nursery Supplies shares. Note: Enter debits before credits. Transactions 1 General Journal Debit Credit >
Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the fair value of the shares is $57 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet > 1 2 3 4 Record the investment in Nursery Supplies shares. Note: Enter debits before credits. Transactions 1 General Journal Debit Credit >
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 2STP
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![Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6]
As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies
Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the
year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the
fair value of the shares is $57 million.
Required:
Prepare the appropriate journal entries from the purchase through the end of the year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions, (i.e., 10,000,000 should be entered as 10).
View transaction list
Journal entry worksheet
>
1
2
3 4
Record the investment in Nursery Supplies shares.
Note: Enter debits before credits.
Transactions
1
General Journal
Debit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37d1d1b3-db8f-46ff-b218-0617a9cc1e6a%2F0a5f014f-8874-4853-ad3e-4eb6c77f7dae%2Fwjvmuv_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6]
As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies
Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the
year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the
fair value of the shares is $57 million.
Required:
Prepare the appropriate journal entries from the purchase through the end of the year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions, (i.e., 10,000,000 should be entered as 10).
View transaction list
Journal entry worksheet
>
1
2
3 4
Record the investment in Nursery Supplies shares.
Note: Enter debits before credits.
Transactions
1
General Journal
Debit
Credit
>
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