Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 2,900 shares of the 100,000 outstanding common stock of Jupiter Co. at $23.80 plus commission charges of $580. On June 1, a cash dividend of $0.60 per share was received. On November 12, 1,000 shares were sold at $29 less commission charges of $120. At the end of the accounting period on December 31, the fair value of the remaining 1,900 shares of Jupiter Company’s stock was $24.50 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. 22 Investments-Jupiter Co. Stock Investments-Jupiter Co. Stock Cash Cash Feedback Area Feedback Question Content Area 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 Cash Cash Dividend Revenue Dividend Revenue Feedback Area Feedback b. Record the revenue earned. Question Content Area c. Using the cost method, journalize the entry for the sale of 1,000 shares. If an amount box does not require an entry, leave it blank. Nov. 12 Cash Cash Gain on Sale of Investments Gain on Sale of Investments Investments-Jupiter Co. Stock Investments-Jupiter Co. Stock Feedback Area Feedback Question Content Area 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 Valuation Allowance for Equity Investments Unrealized Gain on Equity Investments Unrealized Gain on Equity Investments

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 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. 22		Investments-Jupiter Co. Stock	Investments-Jupiter Co. Stock
		Cash	Cash

Feedback Area

Feedback

Question Content Area

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		Cash	Cash
		Dividend Revenue	Dividend Revenue

Feedback Area

Feedback

b. Record the revenue earned.

Question Content Area

c. Using the cost method, journalize the entry for the sale of 1,000 shares. If an amount box does not require an entry, leave it blank.

Nov. 12	Cash	Cash
	Gain on Sale of Investments	Gain on Sale of Investments
	Investments-Jupiter Co. Stock	Investments-Jupiter Co. Stock

Feedback Area

Feedback

Question Content Area

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	Valuation Allowance for Equity Investments
		Unrealized Gain on Equity Investments	Unrealized Gain on Equity Investments

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