Whispering Winds Inc. acquired 25% of the outstanding common shares of Gregson Inc. on December 31, 2022. The purchase price was $970,900 for 51,100 shares and is equal to 25% of Gregson's carrying amount. Gregson declared and paid a $0.70 per share cash dividend on June 15 and again on December 15, 2023. Gregson reported net income of $531,000 for 2023. The fair value of Gregson shares was $22 per share at December 31, 2023. Whispering Winds is a public company and applies IFRS.
Whispering Winds Inc. acquired 25% of the outstanding common shares of Gregson Inc. on December 31, 2022. The purchase price was $970,900 for 51,100 shares and is equal to 25% of Gregson's carrying amount. Gregson declared and paid a $0.70 per share cash dividend on June 15 and again on December 15, 2023. Gregson reported net income of $531,000 for 2023. The fair value of Gregson shares was $22 per share at December 31, 2023. Whispering Winds is a public company and applies IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Whispering Winds Inc. acquired 25% of the outstanding common shares of Gregson Inc. on December 31, 2022. The purchase price
was $970,900 for 51,100 shares and is equal to 25% of Gregson's carrying amount. Gregson declared and paid a $0.70 per share cash
dividend on June 15 and again on December 15, 2023. Gregson reported net income of $531,000 for 2023. The fair value of Gregson's
shares was $22 per share at December 31, 2023. Whispering Winds is a public company and applies IFRS.
(a)
Prepare the journal entries for Whispering Winds for 2022 and 2023, assuming that Whispering Winds cannot exercise
significant influence over Gregson. The investment is accounted for using the FV-OCI model. (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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.)
Date
<
<
Account Titles and Explanation
Debit
Credit
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