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Crane Corp. acquired 6,400 shares of Mandrake Corp. on July 1, 2024 at $9 per share. There is no quoted market price for Mandrake's shares as it is a private company. Crane reports under ASPE and has elected to account for the investment using the cost method. On September 1, Mandrake declared and paid a $0.40 per share dividend and on December 31, Crane sells the shares at $8 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Till

Crane Corp. acquired 6,400 shares of Mandrake Corp. on July 1, 2024 at $9 per share. There is no quoted market price for Mandrake's shares as it is a private company. Crane reports under ASPE and has elected to account for the investment using the cost method. On September 1, Mandrake declared and paid a $0.40 per share dividend and on December 31, Crane sells the shares at $8 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Till

FINANCIAL ACCOUNTING
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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Crane Corp. acquired 6,400 shares of Mandrake Corp. on July 1, 2024 at $9 per share. There is no quoted market price for Mandrake's shares as it is a private company. Crane reports under ASPE and has elected to account for the investment using the cost method. On September 1, Mandrake declared and paid a $0.40 per share dividend and on December 31, Crane sells the shares at $8 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date July 1 Account Titles and Explanation In Cash September 1: Cash Di December 31+ Cash Debit 57600 2560 51200 Loss on Disposal of Investments - Cost/Amortized Cost 6400 Investment in Associate Credit 5760 256 5760
Transcribed Image Text:Crane Corp. acquired 6,400 shares of Mandrake Corp. on July 1, 2024 at $9 per share. There is no quoted market price for Mandrake's shares as it is a private company. Crane reports under ASPE and has elected to account for the investment using the cost method. On September 1, Mandrake declared and paid a $0.40 per share dividend and on December 31, Crane sells the shares at $8 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date July 1 Account Titles and Explanation In Cash September 1: Cash Di December 31+ Cash Debit 57600 2560 51200 Loss on Disposal of Investments - Cost/Amortized Cost 6400 Investment in Associate Credit 5760 256 5760
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