Show Attempt History
Flint Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2022.
The purchase price was $1,130,800 for 51,400 shares and is equal to 20% 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 $534,000 for 2023. The fair value of Gregson's
shares was $23 per share at December 31, 2023. Flint is a public company and applies IFRS.
Prepare the journal entries for Flint for 2022 and 2023, assuming that Flint cannot exercise
signi±cant in²uence 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 0 for the amounts. Record entries
in the order displayed in the problem statement. List all debit entries before credit entries.)
Account Titles and Explanation