Question 1 (10 points) On June 9, 2021, A&A Company purchased 3,900 common shares of...
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Question 1 (10 points) On June 9, 2021, A&A Company purchased 3,900 common shares of Champion Incorporated at a price of $21 each. On A&A Company's year end date of September 30, 2021, the common shares in Champion Incorporated were trading at $18 each. On December 10, 2021, A&A Company received a dividend of $0.80 per share on its investment in Champion Incorporated. On April 25, 2022, A&A Company sold its shares in Champion Incorporated at $25 per share. A&A Company pays a 3% commission on all purchases and sales of securities. A&A Company uses the fair value through other comprehensive income (FV-OCI) method to account for its investment in Champion Incorporated. Required: Prepare journal entries for A&A Company for each of the above transactions, including any applicable year end adjusting entries
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