Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 5,900 shares of the 205,000 outstanding common stock of Jupiter Co. at $41.85 plus commission charges of $885. On June 1, a cash dividend of $0.85 per share was received. On November 12, 1,900 shares were sold at $50 less commission charges of $228. At the end of the accounting period on December 31, the fair value of the remaining 4,000 shares of Jupiter Company’s stock was $42.50 per share. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. Question Content Area a. Using the cost method, journalize the entry for the purchase of stock. If an amount box does not require an entry, leave it blank. Feb 22nd Investments- Junipter Co stock Cash B.) Using the cost method, journalize the entry for the receipt of dividends. If an amount box does not require an entry, leave it blank. June 1st Cash Dividend Revenue c. Using the cost method, journalize the entry for the sale of 1,900 shares. If an amount box does not require an entry, leave it blank. Nov. 12 Cash Gain on sale of investments Investments- Juniper Co Stock D.) Using the cost method, journalize the entry for the change in fair value. If an amount box does not require an entry, leave it blank. Dec. 31 Valuation Allowance for Equity Investments Unrealized Gain on Equity Investments
Entries for equity investments: less than 20% ownership
On February 22, Triangle Corporation acquired 5,900 shares of the 205,000 outstanding common stock of Jupiter Co. at $41.85 plus commission charges of $885. On June 1, a cash dividend of $0.85 per share was received. On November 12, 1,900 shares were sold at $50 less commission charges of $228. At the end of the accounting period on December 31, the fair value of the remaining 4,000 shares of Jupiter Company’s stock was $42.50 per share.
In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.
Question Content Area
a. Using the cost method,
Feb 22nd
Investments- Junipter Co stock
Cash
B.) Using the cost method, journalize the entry for the receipt of dividends. If an amount box does not require an entry, leave it blank.
c. Using the cost method, journalize the entry for the sale of 1,900 shares. If an amount box does not require an entry, leave it blank.
Nov. 12
Cash
Gain on sale of investments
Investments- Juniper Co Stock
D.) Using the cost method, journalize the entry for the change in fair value. If an amount box does not require an entry, leave it blank.
Dec. 31
Valuation Allowance for Equity Investments
Unrealized Gain on Equity Investments
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