Question
On January 3, 2017, Nancy Corporation purchased the following equity securities as an investment: Number of Cost of Total Company Shares Share Cost A 400
On January 3, 2017, Nancy Corporation purchased the following equity securities as an investment:
|
| Number of | Cost of | Total |
| Company | Shares | Share | Cost |
| A | 400 | $20 | $ 8,000 |
| B | 2,000 | 12 | 24,000 |
| C | 800 | 22 | 17,600 |
These securities are classified as available-for-sale. Required:
| a. | Prepare the journal entry to record the acquisition of the stock. | ||
| b. | On June 30, 2017, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Nancy to record the dividend receipt. | ||
| c. | On December 31, 2017, the market values per share were: | ||
| Company | Market Value | ||
| A | $22 | ||
| B | 12 | ||
| C | 20 | ||
| Prepare any journal entry or entries necessary to record these changes in market value. | |||
| d. | On March 14, 2017, Nancy sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale.
| ||
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