Question
Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 8,200 shares of the 285,000 outstanding common stock of Jupiter Co.
Entries for equity investments: less than 20% ownership
On February 22, Triangle Corporation acquired 8,200 shares of the 285,000 outstanding common stock of Jupiter Co. at $23.85 plus commission charges of $1,230. On June 1, a cash dividend of $1.05 per share was received. On November 12, 2,700 shares were sold at $29 less commission charges of $324. At the end of the accounting period on December 31, the fair value of the remaining 5,500 shares of Jupiter Companys stock was $24.50 per share.
In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.
Question Content Area
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. 22 | CashDividend RevenueInterest ReceivableInvestments-Jupiter Co. StockNotes Receivable | - Select - | - Select - |
CashDividends ReceivableInterest ReceivableInvestments-Jupiter Co. StockNotes Receivable | - Select - | - Select - |
Question Content Area
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 1 | CashCash DividendsDividend RevenueDividends ReceivableNotes Receivable | - Select - | - Select - |
CashCash DividendsDividend RevenueDividends ReceivableNotes Receivable | - Select - | - Select - |
Question Content Area
c. Using the cost method, journalize the entry for the sale of 2,700 shares. If an amount box does not require an entry, leave it blank.
Nov. 12 | CashGain on Sale of InvestmentsInterest ReceivableInvestments-Jupiter Co. StockLoss on Sale of Investments | - Select - | - Select - |
CashCash DividendsDividend RevenueDividends ReceivableGain on Sale of Investments | - Select - | - Select - | |
CashCash DividendsDividends ReceivableInterest ReceivableInvestments-Jupiter Co. Stock | - Select - | - Select - |
Question Content Area
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. 31 | CashDividend RevenueInterest ReceivableUnrealized Gain on Equity InvestmentsValuation Allowance for Equity Investments | - Select - | - Select - |
CashDividend RevenueInterest ReceivableUnrealized Gain on Equity InvestmentsValuation Allowance for Equity Investments | - Select - | - Select - |
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