01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share. 31-Oct-19 Belmont Inc paid dividends of $5.00 per share. 31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share. 31-Dec-19 Belmont Inc reported net income of $63,000 for the year. 01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share. Additional Information: Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments. Dividend income is required to be recorded in a separate account. REQUIRED: Prepare the appropriate entries for the above transactions.
01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share. 31-Oct-19 Belmont Inc paid dividends of $5.00 per share. 31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share. 31-Dec-19 Belmont Inc reported net income of $63,000 for the year. 01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share. Additional Information: Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments. Dividend income is required to be recorded in a separate account. REQUIRED: Prepare the appropriate entries for the above transactions.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...
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Hi, I have asked the same question earlier, but its been more than 2 hours; but didnt get a reply to it. I know everyone is busy. But I would really appreciate it. If you can answer this question as soon as possible.
Also, Please include all the calculations for my reference.
Thanks in adavnce.
Transcribed Image Text:Aylmer Corp has the following transactions relating to investments.
Aylmer Corp has a December 31 year end.
01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share.
31-Oct-19 Belmont Inc paid dividends of $5.00 per share.
31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share.
31-Dec-19 Belmont Inc reported net income of $63,000 for the year.
01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share.
Additional Information:
Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments.
Dividend income is required to be recorded in a separate account.
REQUIRED:
Prepare the appropriate entries for the above transactions.
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