Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the following months: 2023 6 Heritage paid $589,500 (including transaction fees of $50) for 51,400 shares (20%) of Port Inc. outstanding common Apr. 30 Port declared and paid a cash dividend of $1.50 per share. shares. Dec. 31 Port announced that its profit for 2023 was $620,000. Fair value of the shares was $13.20 per share. 2024 Jan. 15 Port declared and paid a cash dividend of $1.10 per share. 31 Port announced that its profit for 2024 was $770,000. Fair value of the shares was $13.58 per share. 5 Heritage sold all of its investment in Port for $696,000 cash. Assume that Heritage has a significant influence over Port with its 20% share. Oct. Dec. 2025 Jan. Required: 1. Prepare the entries to record the preceding transactions in Heritage's books.

Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the following months: 2023 6 Heritage paid $589,500 (including transaction fees of $50) for 51,400 shares (20%) of Port Inc. outstanding common Apr. 30 Port declared and paid a cash dividend of $1.50 per share. shares. Dec. 31 Port announced that its profit for 2023 was $620,000. Fair value of the shares was $13.20 per share. 2024 Jan. 15 Port declared and paid a cash dividend of $1.10 per share. 31 Port announced that its profit for 2024 was $770,000. Fair value of the shares was $13.58 per share. 5 Heritage sold all of its investment in Port for $696,000 cash. Assume that Heritage has a significant influence over Port with its 20% share. Oct. Dec. 2025 Jan. Required: 1. Prepare the entries to record the preceding transactions in Heritage's books.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 11P: Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as...

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Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
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.) S Carrying value per share 3.Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port. Equity 8.42 decreases by S 144.800
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