Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Entries for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10. Purchased

Entries for Equity Investments: Less than 20% Ownership

The following equity investment transactions were completed by Vintage Company during a recent year:

Apr. 10. Purchased 2,500 shares of Delew Companys common stock for a price of $61.75 per share plus a brokerage commission of $625. Delew Company has 250,000 shares of common stock outstanding.
July 8. Received a quarterly dividend of $0.55 per share on the Delew Company investment.
Sept. 10. Sold 1,700 shares for a price of $55 per share less a brokerage commission of $350.
Dec. 31. At the end of the accounting period, the fair value of the remaining 800 shares of Delew Companys stock was $61.50 per share.

Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar.

Apr. 10 - Purchase
CashDividend ReceivableDividend RevenueInvestments-Delew Company StockNotes Receivable
- Select - - Select -
CashDividend ReceivableDividend RevenueInvestments-Delew Company StockNotes Receivable
- Select - - Select -
July 8 - Dividend
CashDividend ReceivableDividend RevenueInterest ReceivableInvestments-Delew Company Stock
- Select - - Select -
CashDividend ReceivableDividend RevenueInvestments-Delew Company StockNotes Receivable
- Select - - Select -
Sept. 10 - Sale
CashDividend ReceivableDividend RevenueGain on Sale of InvestmentsInvestments-Delew Company Stock
- Select - - Select -
Cash DividendGain on Sale of InvestmentsInvestments-Delew Company StockLoss on Sale of InvestmentsNotes Receivable
- Select - - Select -
CashDividend RevenueGain on Sale of InvestmentsInvestments-Delew Company StockLoss on Sale of Investments
- Select - - Select -
Dec. 31
CashDividend ReceivableUnrealized Gain on Equity InvestmentsUnrealized Loss on Equity InvestmentsValuation Allowance for Equity Investments
- Select - - Select -
CashDividend ReceivableUnrealized Gain on Equity InvestmentsUnrealized Loss on Equity InvestmentsValuation Allowance for Equity Investments
- Select - - Select -

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Implementing And Auditing The Internal Control System

Authors: D. Chorafas

2001edition

0333929365, 978-0333929360

More Books

Students also viewed these Accounting questions

Question

What are Mr. Davies ethical obligations in this situation? (D10)

Answered: 1 week ago