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2016 Jan. 15 Purchased 15,000 shares of Park, Inc.s common stock at $10 per share plus a brokerage commission of $1,000. These shares represent a
| 2016 | |
| Jan. 15 | Purchased 15,000 shares of Park, Inc.s common stock at $10 per share plus a brokerage commission of $1,000. These shares represent a 25 percent ownership of the Park common stock. |
| Dec. 31 | Received a cash dividend of $2.80 per share of common stock from Park. |
| Dec. 31 | Made the adjusting entry to reflect income from the Park stock investment. Parks 2016 net income is $124,000. |
| 2017 | |
| Jan. 20 | Sold all 15,000 shares of the Park common stock for $136,000. |
Record the transactions and adjustment of the Prince Company using journal entries.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| 1/15/2016 | AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
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| AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
| |
| To record purchase of equity securities. | |||
| 12/31/2016 | AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
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| AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
| |
| To record receipt of dividend. | |||
| 12/31/2016 | AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
|
| AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
| |
| To record portion of Park's net income. | |||
| 1/20/2017 | Cash | Answer
| Answer
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| AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
| |
| AnswerCashGain on sale of investmentsIncome from stock investmentsLoss on sale of investmentsStock investment-influential (Park
| Answer
| Answer
| |
| To record sale of equity securities. | |||
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Construction Contractors AICPA Audit And Accounting Guide
Authors: American Institute Of CPAs
1st Edition
0870519751, 978-0870519758
