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Equity Investments: Less than 20% ownership On September 12, 2,700 shares of Denver Company's common stock are acquired at a price of $38 per share
Equity Investments: Less than 20% ownership On September 12, 2,700 shares of Denver Company's common stock are acquired at a price of $38 per share plus a $135 brokerage commission. On October 15, an $0.80-per-share dividend was received on the Denver Company stock. On November 10, 1,080 shares of the Denver Company stock were sold for $32 per share less a $54 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,620 shares of Denver Company's stock was $31 per share. Denver Company has 400,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank. Sep. 12 Investments-Denver Company Stock 102,735 Cash 0 102,735 Oct. 15 Cash - 2,160 0 Dividend Revenue 0 2,160 Nov. 10 Cash 34,506 0 Loss on Sale of Investments 6,588 0
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