Denver Co. owns 29,000 shares of common stock of Aspen Co. as an investment. The balance of this investment account at January 1, 2023 is $500,000 (already recorded). During 2023, Aspen Co. reported total Net Income of $3,000,000 and paid total dividends of $900,000 to all shareholders. At Dec. 31, 2023 the fair value of Aspen Co. stock was $24 per share. (memos not required) Assuming that the 29,000 shares represent a 2% interest in Aspen Co., prepare any entries that Denver Co. should make to account for its investment in Aspen Co. stock during 2023. Be sure to use proper form for journal entries by using spaces to show your debits and credits.
Denver Co. owns 29,000 shares of common stock of Aspen Co. as an investment. The balance of this investment account at January 1, 2023 is $500,000 (already recorded). During 2023, Aspen Co. reported total Net Income of $3,000,000 and paid total dividends of $900,000 to all shareholders. At Dec. 31, 2023 the fair value of Aspen Co. stock was $24 per share. (memos not required) Assuming that the 29,000 shares represent a 2% interest in Aspen Co., prepare any entries that Denver Co. should make to account for its investment in Aspen Co. stock during 2023. Be sure to use proper form for journal entries by using spaces to show your debits and credits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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