Brief Exercise 17-5

Monty Corporation purchased380shares of Sherman Inc. common stock for $12,900 (Monty does not have significant influence). During the year, Sherman paid a cash dividend of $3.25per share. At year-end, Sherman stock was selling for $37.50per share.

Prepare Monty journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

(c)