Question
Windell Corporation purchased440shares of Sherman Inc. common stock for $12,000 (Windsor does not have significant influence). During the year, Sherman paid a cash dividend of
Windell Corporation purchased440shares of Sherman Inc. common stock for $12,000 (Windsor does not have significant influence). During the year, Sherman paid a cash dividend of $3.25per share. At year-end, Sherman stock was selling for $34.50per share.
Prepare Windsor' 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.)
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Payroll Accounting 2017
Authors: Jeanette Landin, Paulette Schirmer
3rd edition
1259572188, 1259572180, 1259742512, 9781259742514, 978-1259572180
