Some of the account balances of Wildhorse Limited at December 31, 2022, are as follows: $7 Preferred shares (1.600 shares authorized 1.600 shares issued and outstanding Common shares (unlimited authorized 50.000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income $540.000 440,000 97.000 751.000 21.375 The price of the company's common shares has been increasing steadily on the market, it was $19 on January 1, 2023, and advanced to $22 by July 1 and to $25 at the end of 2023. The preferred shares are not openly traded but were appraised at $118 per share during 2023 Wildhorse follows IFRS and had net income of $154.000 during 2023. For the purpose of this question ignore any dividendentement to the preferred shareholders (a1) The company declared a property dividend on April 1. Each common shareholder was to receive one share of Blossom Corp. for every 10 shares outstanding Wildhorse had 7,500 shares of Blossom (2% of the outstanding shares), which it had purchased in 2018 for $67.575. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Blossom shares was $14 per share on April 1. The property dividend was distributed on Aprill 21 when the fair value of the Blossom shares was $17.50. The Blossom shares remained at a fair value of $17.50 nel year end. Prepare the journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts Round answers to decimal places, eg 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem
Some of the account balances of Wildhorse Limited at December 31, 2022, are as follows: $7 Preferred shares (1.600 shares authorized 1.600 shares issued and outstanding Common shares (unlimited authorized 50.000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income $540.000 440,000 97.000 751.000 21.375 The price of the company's common shares has been increasing steadily on the market, it was $19 on January 1, 2023, and advanced to $22 by July 1 and to $25 at the end of 2023. The preferred shares are not openly traded but were appraised at $118 per share during 2023 Wildhorse follows IFRS and had net income of $154.000 during 2023. For the purpose of this question ignore any dividendentement to the preferred shareholders (a1) The company declared a property dividend on April 1. Each common shareholder was to receive one share of Blossom Corp. for every 10 shares outstanding Wildhorse had 7,500 shares of Blossom (2% of the outstanding shares), which it had purchased in 2018 for $67.575. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Blossom shares was $14 per share on April 1. The property dividend was distributed on Aprill 21 when the fair value of the Blossom shares was $17.50. The Blossom shares remained at a fair value of $17.50 nel year end. Prepare the journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts Round answers to decimal places, eg 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Some of the account balances of Wildhorse Limited at December 31, 2022, are as follows:
$7 Preferred shares (1.600 shares authorized, 1.600 shares issued and outstanding)
Common shares (unlimited authorized, 50.000 shares issued and outstanding)
Contributed surplus
Retained earnings
Accumulated other comprehensive income
(31)
The price of the company's common shares has been increasing steadily on the market; it was $19 on January 1, 2023, and advanced
to $22 by July 1 and to $25 at the end of 2023. The preferred shares are not openly traded but were appraised at $118 per share
during 2023. Wildhorse follows IFRS and had net income of $154,000 during 2023. For the purpose of this question, ignore any
dividend entitlement to the preferred shareholders.
The company declared a property dividend on April 1. Each common shareholder was to receive one share of Blossom Corp. for
every 10 shares outstanding Wildhorse had 7,500 shares of Blossom (2% of the outstanding shares), which it had purchased in
2018 for $67,575. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates
only to these shares. The fair value of the Blossom shares was $14 per share on April 1. The property dividend was distributed on
April 21 when the fair value of the Blossom shares was $17.50. The Blossom shares remained at a fair value of $17.50 until year
end.
Date Account Titles and Explanation
Prepare the journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount
is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round
answers to O decimal places, e.g. 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem
statement.)
7
$540,000
440,000
(To record fair value adjustment)
97.000
751.000
21,375
(To record declaration of property dividend)
(To reclassify holding gain)
Debit
Credit
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