Accounting for share investments Check Figure 2: Carrying value per share, $19.63 River Outdoor Supply Corporation( River Corp.) was organized on January 2, 2023. River Corp. issued 50,000 common shares for $250,000 on that date.The following investments transactions and events subsequently occurred: 2023 Jan 12 River Corp. acquired 12,000 shares of Turner Ltd. at a cost of $250,000( including transaction fees of $50). This investment represented 24% of Turner's outstanding shares. Mar. 31 Turner Ltd. declared and paid a cash dividend of $1.00 per share. Dec. 31 Turner Ltd. announced that its profit for 2023 was $125,000. 2024 Aug 15 Turner Ltd. declared and paid a cash dividend of $0.80 per share. Dec 31. Turner Ltd. announced that its loss for 2024 was $95.000. 2025 Jan.6 River Corp. sold all of its investments in Turner Ltd. for $230,000 cash. Assume that River Corp. has significant influences over Turner Ltd. with its 24% share. Required 1. Give the entries to record the preceding transactions in River Corp.'s books. 2. Calculate the carrying value per share of River Corp.'s investment as reflected in the investment account on January 1,2025, resulting from its investment in Turner Ltd. DO NOT GIVE SOLUTION IN IMAGE FORMATE
Accounting for share investments
Check Figure 2: Carrying value per share, $19.63
River Outdoor Supply Corporation( River Corp.) was organized on January 2, 2023. River Corp. issued 50,000 common shares for $250,000 on that date.The following investments transactions and events subsequently occurred:
2023
Jan 12 River Corp. acquired 12,000 shares of Turner Ltd. at a cost of $250,000( including transaction fees of $50). This investment represented 24% of Turner's outstanding shares.
Mar. 31 Turner Ltd. declared and paid a cash dividend of $1.00 per share.
Dec. 31 Turner Ltd. announced that its profit for 2023 was $125,000.
2024
Aug 15 Turner Ltd. declared and paid a cash dividend of $0.80 per share.
Dec 31. Turner Ltd. announced that its loss for 2024 was $95.000.
2025
Jan.6 River Corp. sold all of its investments in Turner Ltd. for $230,000 cash.
Assume that River Corp. has significant influences over Turner Ltd. with its 24% share.
Required
1. Give the entries to record the preceding transactions in River Corp.'s books.
2. Calculate the carrying value per share of River Corp.'s investment as reflected in the investment account on January 1,2025, resulting from its investment in Turner Ltd.
DO NOT GIVE SOLUTION IN IMAGE FORMATE
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