NWP Assessment Player UI Application 11-6

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View Policies Show Attempt History (a) 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. Your Answer Correct Answer 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.) Date Account Titles and Explanation Debit FV-OCI Investments Cash Cash Dividend Revenue Cash 1,130,800 35,980 35,980
(b) Dividend Revenue FV-OCI Investments Unrealized Gain or Loss - OCI Your Answer Correct Answer (Used) Prepare the journal entries for Flint for 2022 and 2023, assuming that Flint can exercise signi±cant in²uence over Gregson. (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.) Date Account Titles and Explanation Debit Investment in Associate Cash Cash Investment in Associate Cash Investment in Associate (To record collection of dividend) Investment in Associate 51,400 1,130,800 35,980 35,980 106,800
(c1) (c2) (d) Investment Income or Loss (To record investment income) Your Answer Correct Answer What amount is reported for the investment in Gregson shares on the December 31, 2023 statement of ±nancial position under each of these methods in Fair Value Method and Equity Method? Fair Value Method Equity Method Investment $ $ Your Answer Correct Answer Where is the investment reported on statement of ±nancial position? The Investment accounts under both Fair Value Method and Equity Method are likely to be inclu 1,182,200 1,165,640
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