Question Solved1 Answer As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $59 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $36 million and distributed cash dividends of $2.25 per share. At As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $59 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $36 million and distributed cash dividends of $2.25 per share. At the end of the year, the fair value of the shares is $55 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) View transaction list 1 Record the investment in Nursery Supplies shares. 2 3 4 Record the investor's share of net income. Record the cash dividends received from Nursery Supplies shares. Record fair value adjustment at year-end. EX Credit >

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Transcribed Image Text: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $59 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $36 million and distributed cash dividends of $2.25 per share. At the end of the year, the fair value of the shares is $55 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) View transaction list 1 Record the investment in Nursery Supplies shares. 2 3 4 Record the investor's share of net income. Record the cash dividends received from Nursery Supplies shares. Record fair value adjustment at year-end. EX Credit >
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Transcribed Image Text: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $59 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $36 million and distributed cash dividends of $2.25 per share. At the end of the year, the fair value of the shares is $55 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) View transaction list 1 Record the investment in Nursery Supplies shares. 2 3 4 Record the investor's share of net income. Record the cash dividends received from Nursery Supplies shares. Record fair value adjustment at year-end. EX Credit >
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Dear Student Find the answer in picture. When Equity Method is employed the investment in an associate is accounted to ensure that the carrying amount reflects true valueOn Purchase of Investmentin MillionInvestment in Nursery Supplies A/c Dr $59To Cash A/c or Bank A/c$59On Receipt of DividendCash A/c Dr2.25To Investment in Nursery Supplies A/c2.25On Earning Net Incom ... See the full answer