Heritage Ltd. was organized on January 2, 2020. The following investment transactions and events occurred during the following months: 2020 Jan. 6 Heritage paid $593,500 for 51,800 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.40 per share. Dec.31 Port announced that its profit for 2020 was $660,000. Fair value of the shares was $13.60 per share. 2021 Oct. 15 Port declared and paid a cash dividend of $1.00 per share. Dec. 31 Port announced that its profit for 2021 was $810,000. Fair value of the shares was $13.98 per share. 2022 Jan. 5 Heritage sold all of its investment in Port for $700,000 cash. Assume that Heritage has a significant influence over Port with its 20% share. Required: 1. Prepare the entries to record the preceding transactions in Heritage's books. D
Heritage Ltd. was organized on January 2, 2020. The following investment transactions and events occurred during the following months: 2020 Jan. 6 Heritage paid $593,500 for 51,800 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.40 per share. Dec.31 Port announced that its profit for 2020 was $660,000. Fair value of the shares was $13.60 per share. 2021 Oct. 15 Port declared and paid a cash dividend of $1.00 per share. Dec. 31 Port announced that its profit for 2021 was $810,000. Fair value of the shares was $13.98 per share. 2022 Jan. 5 Heritage sold all of its investment in Port for $700,000 cash. Assume that Heritage has a significant influence over Port with its 20% share. Required: 1. Prepare the entries to record the preceding transactions in Heritage's books. D
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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Transcribed Image Text:Heritage Ltd. was organized on January 2, 2020. The following investment transactions and events occurred during the following
months:
2020
Jan. 6 Heritage paid $593,500 for 51,800 shares (20%) of Port Inc. outstanding common shares.
Apr. 30 Port declared and paid a cash dividend of $1.40 per share.
Dec.31 Port announced that its profit for 2020 was $660,000. Fair value of the shares was $13.60 per share.
2021
Oct.15 Port declared and paid a cash dividend of $1.00 per share.
Dec.31 Port announced that its profit for 2021 was $810,000. Fair value of the shares was $13.98 per share.
2022
Jan. 5 Heritage sold all of its investment in Port for $700,000 cash..
Assume that Heritage has a significant influence over Port with its 20% share.
Required:
1. Prepare the entries to record the preceding transactions in Heritage's books.
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