Question
Tamarisk Inc. owns shares of Vaughn Corporation stock. At December 31, 2017, the securities were carried in Tamarisks accounting records at their cost of $712,000,
Tamarisk Inc. owns shares of Vaughn Corporation stock. At December 31, 2017, the securities were carried in Tamarisks accounting records at their cost of $712,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was $1,430,000, Tamarisk declared a property dividend whereby the Vaughn securities are to be distributed on October 23, 2018, to stockholders of record on October 8, 2018.
Prepare all journal entries necessary on those three dates.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| Date | Account Titles and Explanation | Debit | Credit |
| Sep. 21Oct. 8Oct. 23 | |||
| (To record gain or loss) | |||
| (To record property dividend) | |||
| Sep. 21Oct. 8Oct. 23 | |||
| Sep. 21Oct. 8Oct. 23 | |||
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
