On July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd. for $75,000. This investment ck Ltd. for $ represents a 14% interest in Duck Ltd. and Bird Inc. uses the cost method to record the investment. On October 31, 2021, Duck Ltd. paid a $50,000 dividend to its shareholders. At December 31, 2021, Duck Ltd.'s shares were valued at $40 per share and Duck Ltd. reported a net loss of $50,000 for the year. On March 15, 2021, Bird Inc. sold the shares for $125,000. Both Bird Inc. and Duck Ltd. have December 31, 2021 year-ends. ©At Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional. tenore indsted journis denfrenter for Distribution

On July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd. for $75,000. This investment ck Ltd. for $ represents a 14% interest in Duck Ltd. and Bird Inc. uses the cost method to record the investment. On October 31, 2021, Duck Ltd. paid a $50,000 dividend to its shareholders. At December 31, 2021, Duck Ltd.'s shares were valued at $40 per share and Duck Ltd. reported a net loss of $50,000 for the year. On March 15, 2021, Bird Inc. sold the shares for $125,000. Both Bird Inc. and Duck Ltd. have December 31, 2021 year-ends. ©At Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional. tenore indsted journis denfrenter for Distribution

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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