On July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd. for $75,000. This investment ck Ltd. for $ represents a 14% interest in Duck Ltd. and Bird Inc. uses the cost method to record the investment. On October 31, 2021, Duck Ltd. paid a $50,000 dividend to its shareholders. At December 31, 2021, Duck Ltd.'s shares were valued at $40 per share and Duck Ltd. reported a net loss of $50,000 for the year. On March 15, 2021, Bird Inc. sold the shares for $125,000. Both Bird Inc. and Duck Ltd. have December 31, 2021 year-ends. ©At Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional. tenore indsted journis denfrenter for Distribution
On July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd. for $75,000. This investment ck Ltd. for $ represents a 14% interest in Duck Ltd. and Bird Inc. uses the cost method to record the investment. On October 31, 2021, Duck Ltd. paid a $50,000 dividend to its shareholders. At December 31, 2021, Duck Ltd.'s shares were valued at $40 per share and Duck Ltd. reported a net loss of $50,000 for the year. On March 15, 2021, Bird Inc. sold the shares for $125,000. Both Bird Inc. and Duck Ltd. have December 31, 2021 year-ends. ©At Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional. tenore indsted journis denfrenter for Distribution
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 104.4C
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