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Prepare the journal entries to account for the investment

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Question :

The following information relates to an equity investment of Charlotte Inc, a publicly accountable corporation that follows IFRS. The investment is accounted for using the FV-NI model. Dividend and interest income are not recorded or reported separately from other investment income accounts.

i. On August 12th 3000 shares of Casino Led. Were acquired at a cost of $59 per share and a 1% commission was paid

ii. On September 28th a dividend of $0.50 per share was received on the Casino Ltd. Shares

iii. On December 315, the Casino Shares had a fair value of $60.50 per share

1. Prepare the journal entries to account for the investment in Casino Ltd.

2. If instead the company used the FV-OCI method to account for this method, prepare all the required journal entries.

Reference no: EM132359731

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