Equity Investments: Less than 20% Ownership On January 23, 17,000 shares of Aurora Company’s common stock are acquired at a price of $24 per share plus a $180 brokerage commission. On April 12, a $0.30-per-share dividend was received on the Aurora Company stock. On June 10, 6,600 shares of the Aurora Company stock were sold for $31 per share less a $125 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 10,400 shares of Aurora Company’s stock was $30 per share. Aurora Company has 220,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. When required, round your answers to the nearest dollar.
Equity Investments: Less than 20% Ownership
On January 23, 17,000 shares of Aurora Company’s common stock are acquired at a price of $24 per share plus a $180 brokerage commission. On April 12, a $0.30-per-share dividend was received on the Aurora Company stock. On June 10, 6,600 shares of the Aurora Company stock were sold for $31 per share less a $125 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 10,400 shares of Aurora Company’s stock was $30 per share. Aurora Company has 220,000 shares of common stock outstanding.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
