Entries for Equity Investments: Less than 20% Ownership

On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock of Jupiter Co. at $25 plus commission charges of $680. On June 1, a cash dividend of $1.70 per share was received. On November 12, 7,000 shares were sold at $31 less commission charges of $100. At the end of the accounting period on December 31, the fair value of the remaining 27,000 shares of Jupiter Company's stock was $25.52 per share.

In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.

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. 22Investments-Jupiter Co. Stock

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Cash

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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 1

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b. Record the revenue earned.

c.Using the cost method, journalize the entry for the sale of 7,000 shares. If an amount box does not require an entry, leave it blank.

Nov. 12

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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.

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

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