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 answe in millions, (i.e., 10,000,000 should be entered as 10). No 1 Transactions Investment revenue Cash Answer is not complete. General Journal O Debit 61,000,000 Credit 61,000,000

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 answe in millions, (i.e., 10,000,000 should be entered as 10). No 1 Transactions Investment revenue Cash Answer is not complete. General Journal O Debit 61,000,000 Credit 61,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Investment in Equity Kalvin Co. acquired 15% of the 5,000,000 shares of common stock of Tops Co. at a cost of $8.50 per share on January 1, 2017. Tops Co. declared and paid a $250,000 cash dividend and reported net income of $685,000 for the year. On January 2, 2018, Kalvin sold these shares at a market price of $9.00 per share. Required: Prepare all necessary journal entries for 2017 and 2018.
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QUESTION 11 In respect to the investment in 60% of the share capital in DAC Enviro Ltd (DAC): JJ Victory purchased 1.2 million (of DAC's 2.0 million issued share capital.) on 1 April 2021 In addition to the £45.0 million cash paid on the acquisition date, JJ Victory issued a one for eight share exchange. The market value of Victory shares on 1 April 2021 was £72.21 per share. The market value of JJ Victory shares on 30 September 2021 was £76.12. You confirm future payments of £20 million are payable in 2 years after acquisition (1 April 2023). JJ Victory applies discount rate of 7% on future payments and pro-rates finance costs charged in the period. Question: The total of the balance included in liabilities recognised in the statement of financial position at 30 September 2021 in respect to the investment in DAC Enviro Ltd is: O a. £17.47 million b. £106.65 million O c. £18.08 million O d. £18.69 million O e. £20.00 million
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