Question
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started