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Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 6,200 shares of the 215,000 outstanding common stock of Jupiter Co. at $39.80 plus commission charges of $1,240. On June 1, a cash dividend of $0.50 per share was received. On November 12, 2,000 shares were sold at $48 less commission charges of $240. At the end of the accounting period on December 31, the fair value of the remaining 4,200 shares of Jupiter Company’s stock was $40.50 per share.

Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 6,200 shares of the 215,000 outstanding common stock of Jupiter Co. at $39.80 plus commission charges of $1,240. On June 1, a cash dividend of $0.50 per share was received. On November 12, 2,000 shares were sold at $48 less commission charges of $240. At the end of the accounting period on December 31, the fair value of the remaining 4,200 shares of Jupiter Company’s stock was $40.50 per share.

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 15.4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...
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Entries for equity investments: less than 20% ownership

On February 22, Triangle Corporation acquired 6,200 shares of the 215,000 outstanding common stock of Jupiter Co. at $39.80 plus commission charges of $1,240. On June 1, a cash dividend of $0.50 per share was received. On November 12, 2,000 shares were sold at $48 less commission charges of $240. At the end of the accounting period on December 31, the fair value of the remaining 4,200 shares of Jupiter Company’s stock was $40.50 per share.

In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.

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Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 6,200 shares of the 215,000 outstanding common stock of Jupiter Co. at $39.80 plus commission charges of $1,240. On June 1, a cash dividend of $0.50 per share was received. On November 12, 2,000 shares were sold at $48 less commission charges of $240. At the end of the accounting period on December 31, the fair value of the remaining 4,200 shares of Jupiter Company's stock was $40.50 per share. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. 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. 88 Feb. 22 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 1 c. Using the cost method, journalize the entry for the sale of 2,000 shares. If an amount box does not require an entry, leave it blank. Nov. 12 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 38
Transcribed Image Text:Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 6,200 shares of the 215,000 outstanding common stock of Jupiter Co. at $39.80 plus commission charges of $1,240. On June 1, a cash dividend of $0.50 per share was received. On November 12, 2,000 shares were sold at $48 less commission charges of $240. At the end of the accounting period on December 31, the fair value of the remaining 4,200 shares of Jupiter Company's stock was $40.50 per share. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. 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. 88 Feb. 22 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 1 c. Using the cost method, journalize the entry for the sale of 2,000 shares. If an amount box does not require an entry, leave it blank. Nov. 12 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 38
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