Recall 3 year-old Manny, at the beginning of the chapter, who has & a seizure disorder. He receives his care in a mobile van sent to his community by the….
Prepare the sale entry if Halberton sells the investment one week into the next fiscal year for $54,200 cash.
Halberton Corp. purchased 1,000 common shares of Xenolt Ltd., a publically traded company, for $52,800. During the year Xenolt paid cash dividends of $2.50 per share. At year-end, due to a temporary downturn in the market, the shares had a market value of $50 per share. Halberton has no specific intention as to when it will sell the shares. Halberton follows IFRS.
a. How would Halberton classify and report this investment?
b. Prepare Halberton’s journal entries for the investment purchase, the dividend, and any year-end adjusting entries.
c. Prepare the sale entry if Halberton sells the investment one week into the next fiscal year for $54,200 cash.
d. How would the answer for part (a) change if Halberton followed ASPE?