A. Record the entry to recognize the impact of selling of 8,000 shares.
B. Record the entry to recognize the impact of selling of 5,000 shares.
particulars | Debit | Credit | ||||
1 | investment in marmon | 10500 | ||||
additional paid in capital | 10500 | |||||
2 | additional paid in capital | 33000 | ||||
investment in marmon | 33000 | |||||
calculation of addtitional paid in capital increase/decrease | ||||||
at the beginning acquisition interest 36000/440000/11 | 90% | |||||
till date fair value adjustment (900000+100000)+(1110000-980000) | 1130000 | |||||
adjusted till date of fair value after stock issue 1130000+(8000*30) | 1370000 | |||||
interest after share issue 36000/(40000+8000) | 75% | |||||
investment equity balance-before issuance of share 900000+(130000*90%) | 1017000 | |||||
implied book value of investment after share issue (1370000*75%) | 1027500 | |||||
additional paid in capital- increase | 10500 | |||||
at the beginning acquisition interest 36000/440000/11 | 90% | |||||
till date fair value adjustment (900000+100000)+(1110000-980000) | 1130000 | |||||
adjusted till date of fair value after stock issue 1130000+(5000*20) | 1230000 | |||||
interest after share issue 36000/(40000+5000) | 80% | |||||
investment equity balance-before issuance of share 900000+(130000*90%) | 1017000 | |||||
implied book value of investment after share issue (1230000*80%) | 984000 | |||||
additional paid in capital- decrease | -33000 |
A. Record the entry to recognize the impact of selling of 8,000 shares. B. Record the...
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