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Accounting for stock Investment Use data given. On August 4,2015, Creative Investments sold its investment sold its investment in Microscape stock for $43 per share.

Accounting for stock Investment

Use data given. On August 4,2015, Creative Investments sold its investment sold its investment in Microscape stock for $43 per share.

Requirements

Journalize the sale. Explanations are not required

What account(s) and amount(s), if any, would be reported on Creatives December 31, 2015, financial statements?

Jan 4

Purchased 500 shares of Microscape stock, paying $54 per share. The investment represent 2% ownership in Microscape voting stock. Creative intends to hold the investment for the indefinite future.

Aug 22

Received cash dividend of $0.30 per share on the Microscape stock.

Dec 31

Adjusted the investment to its current market value of $52 per share.

Dec 31

Microscape reported net income of $200,000 for the year ended 2014

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