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Entries for equity investments: less than 2 0 % ownership On February 2 2 , Triangle Corporation acquired 3 , 4 0 0 shares of
Entries for equity investments: less than ownership
On February Triangle Corporation acquired shares of the outstanding common stock of Jupiter Co at $ plus commission charges of $ On June a cash dividend of $ per share was received. On November shares were sold at $ less commission charges of $ At the end of the accounting period on December the fair value of the remaining shares of Jupiter Companys stock was $ per share.
In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.
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a Using the cost method, journalize the entry for the purchase of stock. If an amount box does not require an entry, leave it blank.
Feb.
InvestmentsJupiter Co Stock
Cash
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a When recording the purchase of the investment, consider the amount of the brokerage commission.
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b Using the cost method, journalize the entry for the receipt of dividends. If an amount box does not require an entry, leave it blank.
June
Cash
Dividend Revenue
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b Record the revenue earned.
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c Using the cost method, journalize the entry for the sale of shares. If an amount box does not require an entry, leave it blank.
Nov.
Cash
Gain on Sale of Investments
InvestmentsJupiter Co Stock
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c When recording the cash received, consider the commission. To complete the entry determine and gain or loss to be recorded.
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d Using the cost method, journalize the entry for the change in fair value. If an amount box does not require an entry, leave it blank.
Dec.
Valuation Allowance for Equity Investments
Unrealized Gain on Equity Investments
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Partially correct
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Partially correct
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