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Why is the 0 entry red? Cole Inc. owns shares of Marlin Corporation stock. At December 31, 2020, the securities were carried in Coles accounting
Why is the 0 entry red?
Cole Inc. owns shares of Marlin Corporation stock. At December 31, 2020, the securities were carried in Coles accounting records at their cost of $875,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,200,000, Cole declared a property dividend whereby the Marlin securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021.
Help with the red entries ?!
Woolford Inc. declared a cash dividend of $1 per share on its 2 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare all journal entries necessary on those three dates. (Enter answers in dollars. 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 o for the amounts.) Date Account Titles and Explanation Debit Credit TAug. 1 Retained Earnings 2,000,000 Dividends Payable 2,000,000 Aug. 15 No Entry x No Entry 0 Sep. 9 Dividends Payable 2,000,000 Cash 2,000,000 Date Account Titles and Explanation Debit Credit Sep. 21 TEquity Investments 325,000 325,000 Unrealized Holding Gair (To record gain or loss) Retained Earnings 1,200,000 1,200,000 Property Dividends Pay (To record property dividend) Oct. 8 X Oct. 23 Property Dividends Payabli 1,200,000 Equity Investments 1,200,000Step by Step Solution
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