ENTRIES

Investment in Associate
Cash
to record the investment

Excess attributable to equipment ((2,000,000-1,200,000) x 40%)

Excess attributable to building ((1,600,000-1,000,000) x 40%)

Investment Income
Investment in Associate (320,000 / 4)
to record the amortization of the excess attributable to t

Investment Income
Investment in Associate (240,000 / 12)
to record the amortization of the excess attributable to t

Investment in Associate
Investment Income (40% x 1,600,000)
to record the share in net income

Cash (40% x 1,000,000)

Investment in Associate
to record the share in cash dividend

Interest in the company (30,000 shares/ 100,000 shares)

Company's net Income fro the whole 2020

Interest in the company

Divided by 6 months /12 months

INVESTMENT INCOME

INV
Carrying Amount of Investment in Associate
 2,560,000.00
2,560,000.00
to record the investment

table to equipment ((2,000,000-1,200,000) x 40%)

table to building ((1,600,000-1,000,000) x 40%)

80,000.00
ment in Associate (320,000 / 4) 80,000.00
to record the amortization of the excess attributable to the equipment

20,000.00
ment in Associate (240,000 / 12) 20,000.00
to record the amortization of the excess attributable to the building

640,000.00
ment Income (40% x 1,600,000) 640,000.00
to record the share in net income

400,000.00
ment in Associate 400,000.00
to record the share in cash dividend

(30,000 shares/ 100,000 shares) 30%

ro the whole 2020 5,000,000.00

30%
1,500,000.00
0.50
750,000.00

INVESTMENT IN ASSOCIATE
Acquisition cost 4,000,000.00 150,000.00
 Share in Income (5,000,000 x 10%) 500,000.00
4,500,000.00 150,000.00
ng Amount of Investment in Associate 4,350,000.00

Net Income 5,000,000.00

Less: Preference share dividend (10% x 2,000,000) 200,000.00
Net Income to ordinary shares 4,800,000.00

Investment Income (50% 4,800,000) 2,400,000.00

Investment in Associate 2,400,000.00

Investment Income 2,400,000.00
to record the share in net income
 320,000.00
240,000.00 INVESTMENT IN ASSOCIATE
Initial Measurement 2,560,000.00
Share in net income 640,000.00

3,200,000.00
Carrying Amount in Investment in Associate 2,700,000.00

INVESTMENT INCOME
Amortization of excess attributable to equipment 80,000.00
Amortization of excess attributable to building 20,000.00

100,000.00

Share in cash dividend (1,500,000 x 10%)

CIATE
80,000.00 Amortization of excess attributable to equipment
20,000.00 Amortization of excess attributable to building
400,000.00 Share in cash dividend
500,000.00

ME
640,000.00 Share in net income

640,000.00
540,000.00 Investment Income