Entries for equity investments: less than 20% ownership Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Feb. 2 Purchased for cash 3,100 shares of Celeste Inc.’s common stock for $32 per share plus a $124 brokerage commission. Celeste Inc. has 80,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.45 per share on Celeste Inc. stock. June 7 Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. July 26 Sold 4,000 shares of Celeste Inc. stock for $41 per share less a $100 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.62 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar.
Entries for equity investments: less than 20% ownership Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Feb. 2 Purchased for cash 3,100 shares of Celeste Inc.’s common stock for $32 per share plus a $124 brokerage commission. Celeste Inc. has 80,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.45 per share on Celeste Inc. stock. June 7 Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. July 26 Sold 4,000 shares of Celeste Inc. stock for $41 per share less a $100 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.62 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entries for equity investments: less than 20% ownership
Quan Corp. manufactures construction equipment.
| Feb. 2 | Purchased for cash 3,100 shares of Celeste Inc.’s common stock for $32 per share plus a $124 brokerage commission. Celeste Inc. has 80,000 shares of common stock outstanding. |
| Mar. 6 | Received dividends of $0.45 per share on Celeste Inc. stock. |
| June 7 | Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. |
| July 26 | Sold 4,000 shares of Celeste Inc. stock for $41 per share less a $100 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. |
| Sept. 25 | Received dividends of $0.62 per share on Celeste Inc. stock. |
| Dec. 31 | At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720. |
If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar.
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