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Accounting for Equity SecuritiesInfluential The Dunn Company had the following transactions and adjustment related to a stock investment: 2016 Jan. 15 Purchased 12,000 shares of
Accounting for Equity SecuritiesInfluential The Dunn Company had the following transactions and adjustment related to a stock investment:
2016 | |
Jan. 15 | Purchased 12,000 shares of Van, Inc.s common stock at $10 per share plus a brokerage commission of $900. These shares represent a 30 percent ownership of Vans common stock. |
Dec. 31 | Received a cash dividend of $2.25 per share of common stock from Van. |
Dec. 31 | Made the adjusting entry to reflect income from the Van stock investment. Vans 2016 net income is $85,000. |
2017 | |
Jan. 20 | Sold all 12,000 shares of the Van common stock for $125,500. |
Record the transactions and adjustment of the Dunn Company using journal entries.
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