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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Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the following
months:
2023
Jan. 6 Heritage paid $589,500 (including transaction fees of $50) for 51,400 shares (20%) of Port Inc. outstanding common
shares.
Apr. 30 Port declared and paid a cash dividend of $1.50 per share.
Dec. 31 Port announced that its profit for 2023 was $620,000. Fair value of the shares was $13.20 per share.
2024
Oct. 15 Port declared and paid a cash dividend of $1.10 per share.
Dec. 31 Port announced that its profit for 2024 was $770,000. Fair value of the shares was $13.58 per share.
2025
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.
Jan.
Required:
1. Prepare the entries to record the preceding transactions in Heritage's books.
View transaction list
No
1
2
View journal entry worksheet
Date
Jan 06, 2023
Equity
Apr 30, 2023
Carrying value per share
General Journal
Investment in Associate-Port Inc
Cash
by
Dividend income
Investment in Associate - Port Inc
Debit
589,500
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.)
Credit
589,500
4
3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port.

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