The following events are for Toronto Investment Inc.: 2020 Jan.14 Purchased 18,200 shares of Quatro Inc. common shares for $161,900. Quatro has 91,000 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto.Oct.1 Quatro declared and paid a cash dividend of $3.10 per share.Dec.31 Quatro announced that profit for the year amounted to $655,000.2021 April1 Quatro declared and paid a cash dividend of $3.20 per share.Dec.31 Quatro announced that profit for the year amounted to $738,100. 31 Toronto sold 6,500 shares of Quatro for $106,820.Prepare general journal entries (Included Picture as sample) 1. Record the purchase of investment (Jan 14, 2020) 2. Record the collection of dividends (Oct 01, 2020) 3. Record the equity share of profits in investment (Dec 31, 2020) DateGeneral JournalDebitCreditJan 14, 2020

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Answered: The following events are for Toronto…

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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The following events are for Toronto Investment Inc.:

2020
Jan.	14	Purchased 18,200 shares of Quatro Inc. common shares for $161,900. Quatro has 91,000 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto.
Oct.	1	Quatro declared and paid a cash dividend of $3.10 per share.
Dec.	31	Quatro announced that profit for the year amounted to $655,000.
2021
April	1	Quatro declared and paid a cash dividend of $3.20 per share.
Dec.	31	Quatro announced that profit for the year amounted to $738,100.
	31	Toronto sold 6,500 shares of Quatro for $106,820.

Prepare general journal entries (Included Picture as sample)

1. Record the purchase of investment (Jan 14, 2020)

2. Record the collection of dividends (Oct 01, 2020)

3. Record the equity share of profits in investment (Dec 31, 2020)

Date
General Journal
Debit
Credit
Jan 14, 2020

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