In 1/1/2024 Smart co. with owner equity (ordinary shares 1,500,0000, premium 2,500,000 and retained earning 1,800,000) purchased 10% of Welly co.with owner equity (ordinary shares 800,0000, premium700,000 and retained earning 1,000,000) by isuing 50,000 of its 25par and 5 market price. In that date the inventory of welly book value was 100,000 and market value 140,000, equipment with book value 250,000 and fair market 320,000(7 years) In 31/12/2024 ART income was 280,000 before recorded any of DORPY and paid dividend 70,000, and income was 80,000 with 40,000 dividend, the market price share for Smart was 125 and 75 for welly in 31/12/2024 required: journalize all required entries for this investment in 01/01/2024 and 31/12/2024 with any elemination entries in 31/12/2024

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In 1/1/2024 Smart co. with owner equity (ordinary shares 1,500,0000, premium 2,500,000 and retained earning 1,800,000)
purchased 10% of Welly co.with owner equity (ordinary shares 800,0000, premium700,000 and retained earning 1,000,000) by
isuing 50,000 of its 25par and 5 market price. In that date the inventory of welly book value was 100,000 and market value
140,000, equipment with book value 250,000 and fair market 320,000(7 years) In 31/12/2024 ART income was 280,000 before
recorded any of DORPY and paid dividend 70,000, and income was 80,000 with 40,000 dividend, the market price share for Smart
was 125 and 75 for welly in 31/12/2024
required: journalize all required entries for this investment in 01/01/2024 and 31/12/2024 with any elemination entries in
31/12/2024
Transcribed Image Text:In 1/1/2024 Smart co. with owner equity (ordinary shares 1,500,0000, premium 2,500,000 and retained earning 1,800,000) purchased 10% of Welly co.with owner equity (ordinary shares 800,0000, premium700,000 and retained earning 1,000,000) by isuing 50,000 of its 25par and 5 market price. In that date the inventory of welly book value was 100,000 and market value 140,000, equipment with book value 250,000 and fair market 320,000(7 years) In 31/12/2024 ART income was 280,000 before recorded any of DORPY and paid dividend 70,000, and income was 80,000 with 40,000 dividend, the market price share for Smart was 125 and 75 for welly in 31/12/2024 required: journalize all required entries for this investment in 01/01/2024 and 31/12/2024 with any elemination entries in 31/12/2024
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