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 method. Feb. 2 Mar. 6 June 7 July 26 Sept. 25 Dec. 31 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. Received dividends of $0.45 per share on Celeste Inc. stock. Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. 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. Received dividends of $0.62 per share on Celeste Inc. stock. At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720. recent year using the fair value
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 method. Feb. 2 Mar. 6 June 7 July 26 Sept. 25 Dec. 31 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. Received dividends of $0.45 per share on Celeste Inc. stock. Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. 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. Received dividends of $0.62 per share on Celeste Inc. stock. At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720. recent year using the fair value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format ?

Transcribed Image Text: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.
Feb. 2
Mar. 6
June 7
July 26
Sept. 25
Dec. 31
Investments-Celeste Inc. Stock ✔
Cash ✔
Cash ✔
Dividend Revenue ✓✔
Investments-Celeste Inc. Stock ✔
Cash ✔
Cash ✔
Gain on Sale of Investments X
Investments-Celeste Inc. Stock ✔
Cash ✔
Dividend Revenue ✔
Valuation Allowance for Equity Investments ✔
Unrealized Gain on Equity Investments ✔
99,324 ✓
1,395 ✓
53,256 ✓
163,900
310 ✓
20,720 X
99,324
1,395
53,256
30,340
133,560
310
✓
20,720 X

Transcribed Image Text: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
Mar. 6
June 7
July 26
Sept. 25
Dec. 31
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.
Received dividends of $0.45 per share on Celeste Inc. stock.
Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission.
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.
Received dividends of $0.62 per share on Celeste Inc. stock.
At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720.
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