AutoSave OFF BESU- B-09.04Student Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments Calibri (Body) v 10 ~ Ai = = = ab Wrap Text General [47Or HP/ AL 5 Paste B I U av A. Merge & Center Insert .00 .00 0 Delete Format $ %) Ideas Conditional Format Formatting as Table Cell Styles Sort & Filter Find & Select Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No A15 - E F G H I J L M N O P A B C D Winsloe Corporation obtained an investment in the stock of Southern Rail. The intent of the investment was not to obtain control or to exert significant influence. Winsloe has no plans to trade the investment for near-term profits. Following is a description of the activity related to the investment in Southern Rail: 1 2 Aug. 5 3 Aug. 31 Purchased 10,000 shares of Southern Rail at $9 per share. The fair value of Southern Rail's stock was $10 per share. $ The fair value of Southern Rail's stock was $8.50 per share. 4 Sept. 30 Received a dividend from Southern Rail of $0.25 per share. 5 Oct. 15 6 Oct. 31 The fair value of Southern Rail's stock was $9.50 per share. 7 (a) What method should be used to account for this investment? Does management intent influence this decision? If the investment were obtained with the objective of near-term trading for profit, what would be done differently? Prepare journal entries for the activity pertaining to the investment in Southern Rail. 8 (b) 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Problem Worksheet + Ready 6 P 125% AutoSave OFF BESU- B-09.04Student Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments Calibri (Body) v 10 ~ Ai = = ab Wrap Text General HP AL --- :28 O 5 Paste B I U arA E Merge & Center Insert .00 .00 0 Delete Format $ % ) Ideas Conditional Format Cell Formatting as Table Styles & Sort & Filter Find & Select Yes No Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? A1 fx (a) | DE F (a) B L M N O Q R S T V W Y 2 [b] 3 GENERAL JOURNAL 4 Date Accounts Debit Credit 5 5-Aug 6 8 9 31-Aug 10 11 12 13 30-Sep 14 15 16 17 15-Oct 18 19 20 21 31-Oct 22 23 24 26 27 28 Problem Worksheet + Ready 6 100%