Heritage Ltd. was organized on January 2, 2023. The following Investment transactions and events occurred during the following months: 6 Heritage paid $595,500 (including transaction fees of $50) for 52,000 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.10 per share. Dec. 31 Port announced that its profit for 2023 was $680,000. Fair value of the shares was $13.80 per share.. 2024 Oct. Dec. 2023 Jan. 15 Port declared and paid a cash dividend of $0.70 per share. 31 Port announced that its profit for 2024 was $830,000. Fair value of the shares was $14.18 per share. Jan. 5 Heritage sold all of its investment in Port for $702,000 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. 2025 View transaction list Journal entry worksheet < 1 Record the purchase in strategic investment. Note: Enter debits before credits. Date Jan 06, 2023 2 3 4 Record entry Equity Carrying value per share 5 General Journal by Clear entry 6 Debit Credit 2. Calculate the carrying value per share of Heritage's Investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) View general journal > 3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its Investment in Port.
Heritage Ltd. was organized on January 2, 2023. The following Investment transactions and events occurred during the following months: 6 Heritage paid $595,500 (including transaction fees of $50) for 52,000 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.10 per share. Dec. 31 Port announced that its profit for 2023 was $680,000. Fair value of the shares was $13.80 per share.. 2024 Oct. Dec. 2023 Jan. 15 Port declared and paid a cash dividend of $0.70 per share. 31 Port announced that its profit for 2024 was $830,000. Fair value of the shares was $14.18 per share. Jan. 5 Heritage sold all of its investment in Port for $702,000 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. 2025 View transaction list Journal entry worksheet < 1 Record the purchase in strategic investment. Note: Enter debits before credits. Date Jan 06, 2023 2 3 4 Record entry Equity Carrying value per share 5 General Journal by Clear entry 6 Debit Credit 2. Calculate the carrying value per share of Heritage's Investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) View general journal > 3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its Investment in Port.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please dont provide answer in image format thank you
Transcribed Image Text:Heritage Ltd. was organized on January 2, 2023. The following Investment transactions and events occurred during the following
months:
2023
Jan. 6 Heritage paid $595,500 (including transaction fees of $50) for 52,000 shares (20%) of Port Inc. outstanding common
shares.
Apr. 30 Port declared and paid a cash dividend of $1.10 per share.
Dec.
31 Port announced that its profit for 2023 was $680,000. Fair value of the shares was $13.80 per share.
2024
Oct. 15 Port
declared and paid a cash dividend of $0.70 per share.
Dec. 31 Port announced that its profit for 2024 was $830,000. Fair value of the shares was $14.18 per share..
2025
Jan. 5 Heritage sold all of its investment in Port for $702,000 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.
View transaction list
Journal entry worksheet
1
Date
Jan 06, 2023
2
Record the purchase in strategic investment.
Note: Enter debits before credits.
Record entry
3 4
Equity
Carrying value per share
5
General Journal
by
Clear entry
6
Debit
Credit
2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Round
your answer to 2 decimal places.)
View general journal
>
3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its Investment in Port.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education