1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment: Number of Cost of Total Cost $ 8,000 24,000 17,600 Company Shares 400 Share $20 A в 2,000 12 800 22 These securities are classified as available for sale. Required: a. Prepare the journal entry to record the acquisition of the stock. b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Castle to record the dividend receipt. c. On December 31, 2020, the market values per share were: Market Value $22 Company B 12 20 Prepare any journal entry or entries necessary to record these changes in market value.

1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment: Number of Cost of Total Cost $ 8,000 24,000 17,600 Company Shares 400 Share $20 A в 2,000 12 800 22 These securities are classified as available for sale. Required: a. Prepare the journal entry to record the acquisition of the stock. b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Castle to record the dividend receipt. c. On December 31, 2020, the market values per share were: Market Value $22 Company B 12 20 Prepare any journal entry or entries necessary to record these changes in market value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment:
Number of
Cost of
Total
Company
Shares
Share
$20
Cost
$ 8,000
24,000
600 ,7ב
400
2,000
800
B
12
22
These securities are classified as available for sale.
Required:
a. Prepare the journal entry to record the acquisition of the stock.
b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal
entry that would be used by Castle to record the dividend receipt.
c. On December 31, 2020, the market values per share were:
Company
Market Value
A
$22
B
12
20
Prepare any journal entry or entries necessary to record these changes in market value.
d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare
the journal entry to record the sale.

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