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Waterway Corporation purchased 360 shares of Sherman Inc common stock for $11.900 Waterway does not hawe significant influence). During the year, Sherman paid a cash
Waterway Corporation purchased 360 shares of Sherman Inc common stock for $11.900 Waterway does not hawe significant influence). During the year, Sherman paid a cash dividend of 53.25 per share. At year-end, Sficrman stock was selling for 537.50 per share. Prepare Waterway' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account). (Uist all debit entries before credit entries. Credit occount tides are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "Wo Entry" for the account bitles and enter ofor the amounts.)
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