Heritage Ltd. was organized on January 2, 2023. The following Investment transactions and events occurred during the following months: 6 Heritage paid $595,500 (including transaction fees of $50) for 52,000 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.10 per share. Dec. 31 Port announced that its profit for 2023 was $680,000. Fair value of the shares was $13.80 per share.. 2024 Oct. Dec. 2023 Jan. 15 Port declared and paid a cash dividend of $0.70 per share. 31 Port announced that its profit for 2024 was $830,000. Fair value of the shares was $14.18 per share. Jan. 5 Heritage sold all of its investment in Port for $702,000 cash. Assume that Heritage has a significant influence over Port with its 20% share. Required: 1. Prepare the entries to record the preceding transactions In Heritage's books. 2025 View transaction list Journal entry worksheet < 1 Record the purchase in strategic investment. Note: Enter debits before credits. Date Jan 06, 2023 2 3 4 Record entry Equity Carrying value per share 5 General Journal by Clear entry 6 Debit Credit 2. Calculate the carrying value per share of Heritage's Investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) View general journal > 3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its Investment in Port.
Heritage Ltd. was organized on January 2, 2023. The following Investment transactions and events occurred during the following months: 6 Heritage paid $595,500 (including transaction fees of $50) for 52,000 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.10 per share. Dec. 31 Port announced that its profit for 2023 was $680,000. Fair value of the shares was $13.80 per share.. 2024 Oct. Dec. 2023 Jan. 15 Port declared and paid a cash dividend of $0.70 per share. 31 Port announced that its profit for 2024 was $830,000. Fair value of the shares was $14.18 per share. Jan. 5 Heritage sold all of its investment in Port for $702,000 cash. Assume that Heritage has a significant influence over Port with its 20% share. Required: 1. Prepare the entries to record the preceding transactions In Heritage's books. 2025 View transaction list Journal entry worksheet < 1 Record the purchase in strategic investment. Note: Enter debits before credits. Date Jan 06, 2023 2 3 4 Record entry Equity Carrying value per share 5 General Journal by Clear entry 6 Debit Credit 2. Calculate the carrying value per share of Heritage's Investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) View general journal > 3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its Investment in Port.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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Transcribed Image Text:Heritage Ltd. was organized on January 2, 2023. The following Investment transactions and events occurred during the following
months:
2023
Jan. 6 Heritage paid $595,500 (including transaction fees of $50) for 52,000 shares (20%) of Port Inc. outstanding common
shares.
Apr. 30 Port declared and paid a cash dividend of $1.10 per share.
Dec.
31 Port announced that its profit for 2023 was $680,000. Fair value of the shares was $13.80 per share.
2024
Oct. 15 Port
declared and paid a cash dividend of $0.70 per share.
Dec. 31 Port announced that its profit for 2024 was $830,000. Fair value of the shares was $14.18 per share..
2025
Jan. 5 Heritage sold all of its investment in Port for $702,000 cash.
Assume that Heritage has a significant Influence over Port with its 20% share.
Required:
1. Prepare the entries to record the preceding transactions In Heritage's books.
View transaction list
Journal entry worksheet
1
Date
Jan 06, 2023
2
Record the purchase in strategic investment.
Note: Enter debits before credits.
Record entry
3 4
Equity
Carrying value per share
5
General Journal
by
Clear entry
6
Debit
Credit
2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Round
your answer to 2 decimal places.)
View general journal
>
3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its Investment in Port.
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