The following information relates to the equity investments to Benji Company on 2020. On January 1,...

The following information relates to the equity investments to Benji Company on 2020.

On January 1, Benji acquires 50,000 ordinary shares (represent 30% ownership) of Coconut Plc for $130,000.
On May 1, Benji purchased 2,000 shares (less than 10% ownership) of Dodo Co. at $18 per share.
On June 1, Benji purchased 3,000 shares (less than 10% ownership) of Denver Co. at $15 per share
On July 1, Benji sold 500 shares of Dodo for $19 per share.
On September 30, Coconut declared and paid cash dividend totaling to $ 100,000
On December 1, Dodo declared and paid a $1 per share cash dividend.
On December 10, Denver declared a cash dividend of $2 per share to be paid in the next month.
On December 31, Coconut, Denver, and Dodo reported net income $230,000; $400,000; and 325,000 respectively.
At December 31, 2020, the shares had the following price per share value: Coconut $25, Dodo $17 and Denver $17

Instructions

Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these investments (except investment in Coconut Plc. share) are managed to profit from changes in market price (held for trading). Benji Company doesn’t have equity investment before 2020.
Prepare a partial statement of financial position showing the Investment account at December 31, 2020

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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