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Questions

Sаrаh Cоrp. (Sаrah) decides tо make an investment in Pie Ltd. (Pie). At this time, Pie has 200,000 shares authоrized, and 110,000 shares outstanding. On January 1, 2023, Pie issues Sarah 10,000 shares for $400,000 in cash (so now there are 120,000 shares outstanding). Pie and Sarah have a December 31st year ends. Additional information:        On November 1, 2023, Pie declares a total cash dividend of $180,000.        Pie reports $225,000 net income for 2023. Its stock price on December 31, 2023 is $38.        On January 15, 2024, Sarah is approached by an investment fund which offers to buy all its Pie shares for $42 per share (less brokerage commission of $600). This is a premium over the current stock price of $38. Sarah accepts the offer and sells the shares on that day. Required:    Prepare all of the journal entries in Sarah's books for the 2023 and 2024 years assuming they use the fair value through net income model to account for this investment. Note: Extra rows have been provided in the template below for spacing.  If you are recording an entry through the Statement of Income and Other Comprehensive Income, indicate if the account flows through net income (NI) or Other Comprehensive Income (OCI) to get full marks. R