In January 2001, Solitron, Inc., determined that it had excess cash on hand and decided to invest
Question:
In January 2001, Solitron, Inc., determined that it had excess cash on hand and decided to invest in Horner Company stock. The company intends to hold the stock for a period of three to five years, thereby making the investment an available-for-sale security. The following transactions took place in 2001, 2002, and 2003.
2001 Jan 17 Purchased 2,750 shares of Horner Company stock for $89,500. May 10 Received a cash dividend of $1.30 per share on Horner Company stock. Dec. 31 The market value of the Horner Company stock was $30 per share. 2002 May 22 Purchased 750 shares of Horner Company stock at $40 per share. July 18 Received a cash dividend of $0.90 per share on the Horner Company stock. Dec. 31 The market value of the Horner Company stock was $42 per share. 2003 June 7 Received a cash dividend of $1 per share on the Horner Company stock. Oct. 5 Sold the Horner Company stock at $27 per share for cash. Dec. 31. The market value of the Horner Company stock was $25 per share. Prepare the journal entries required to record each of these events.
Step by Step Answer:
Financial Accounting
ISBN: 9780324066708
8th Edition
Authors: W. Steven Albrecht, James D. Stice, Earl Kay Stice, K. Fred Skousen, Albrecht S.E.