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1. Dixie Corporation recorded the following transactions during 2018: April 30 Purchased 3,000 shares of Enigma Corporation stock at $23 per share and classified the
1. Dixie Corporation recorded the following transactions during 2018: April 30 Purchased 3,000 shares of Enigma Corporation stock at $23 per share and classified the shares as FVTPL financial assets- Equity. Dixie did not make the irrevocable option to measure the equity investment as FVTOCI, and Dixie did not tend to influence or control Enigma. Enigma Corporation has 50,000 shares outstanding. May 31 Received a cash dividend of $2.00 per share on Enigma Corporation stock. July 29 Sold 1,000 shares of Enigma Corporation stock for $25 per share. December 15 Sold 2,000 shares of Enigma Corporation stock for $20 per share. Give the journal entries necessary to account for the investment in Enigma Corporation during 2018. (28%)
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