Christina Corporation purchased 400 shares of Nolan Inc. common stock for $13,200 (Christina does not have significant

Question:

Christina Corporation purchased 400 shares of Nolan Inc. common stock for $13,200 (Christina does not have significant influence). During the year, Nolan paid a cash dividend of $3.25 per share. At year-end, Nolan stock was selling for $34.50 per share. Prepare Christina’s journal entries to record

(a) The purchase of the investment,

(b) The dividends received,

(Assume a zero balance in the Fair Value Adjustment account.)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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