Co.BoulderCo.$150,000 $0.25$400,000 $0.45Instructions:$6.701. How should each of these investments be accounted for? Why?2. For each investment, journalize the following transactions forGiant Co.:A. Purchase of investments on January 1, 2021.B. Dividends received from the investments during 2021.C. Any adjustment for net income earned by the investment.D. Any adjustment for the investment's year-end market price. On January 1, 2021, Giant Co. purchased the following investmentsfor cash:15,000 shares Rock Co. stock45,000 shares Boulder Co. stockBoth Rock and Boulder have 100,000 common shares outstanding.During 2021, Rock and Boulder had the following information:RockCo.BoulderCo.NetIncomeCashDividendsper Share$150,000 $0.25$400,000 $0.45Instructions:MarketPrice perShare at12/31/21$1.20$20,000$250,000$6.70

IAS 28 (International Accounting Standards) Specifies about "Investments in associates and Joint…

Instructions: 1. How should each of these investments be accounted for? Why? 2. For each investment, journalize the following transactions for Giant Co.: A. Purchase of investments on January 1, 2021. B. Dividends received from the investments during 2021. C. Any adjustment for net income earned by the investment. D. Any adjustment for the investment's year-end market price.

Instructions: 1. How should each of these investments be accounted for? Why? 2. For each investment, journalize the following transactions for Giant Co.: A. Purchase of investments on January 1, 2021. B. Dividends received from the investments during 2021. C. Any adjustment for net income earned by the investment. D. Any adjustment for the investment's year-end market price.

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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