Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 December 31, 2021 Moon Company Star Company Sun Company 200,000 400,000 600,000 220,00 300,000 580,000 The equity securities do not qualify as held for trading. The entity has elected irrevocably to present changes in fair value in other comprehensive income. Required: Prepare journal entries on December 31, 2020 and December 31, 2021.

Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 December 31, 2021 Moon Company Star Company Sun Company 200,000 400,000 600,000 220,00 300,000 580,000 The equity securities do not qualify as held for trading. The entity has elected irrevocably to present changes in fair value in other comprehensive income. Required: Prepare journal entries on December 31, 2020 and December 31, 2021.

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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Question

Prepare journal entries on December 31, 2020 and December
Problem 15-4 (IAA)
Transitory Company acquired the following equity securities
Cost
Market
December 31, 2020
Moon Company
Star Company
Sun Company
200,000
400,000
600,000
120,000
280,000
650,000
December 31, 2021
Moon Company
Star Company
Sun Company
200,000
400,000
600,000
220,000
300,000
580,000
The equity securities do not qualify as held for trading.
The entity has elected irrevocably to present changes in fair
value in other comprehensive income.
Required:
31, 2021.
426

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