Feb. 2 Purchased for cash 5,000 shares of Celeste Inc.’s common stock for $20 per share plus a $100 brokerage commission. Celeste Inc. has 87,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.45 per share on Celeste Inc. stock. June 7 Purchased 2,000 shares of Celeste Inc. stock for $27 per share plus a $130 brokerage commission. July 26 Sold 5,900 shares of Celeste Inc. stock for $35 per share less a $110 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.45 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 1,100 shares of Celeste Inc. stock was $31,677.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Quan Corp. manufactures construction equipment.

 

Feb.

2

Purchased for cash 5,000 shares of Celeste Inc.’s common stock for $20 per share plus a $100 brokerage commission. Celeste Inc. has 87,000 shares of common stock outstanding.

Mar.

6

Received dividends of $0.45 per share on Celeste Inc. stock.

June

7

Purchased 2,000 shares of Celeste Inc. stock for $27 per share plus a $130 brokerage commission.

July

26

Sold 5,900 shares of Celeste Inc. stock for $35 per share less a $110 brokerage commission. Quan assumes that the first investments purchased are the first investments sold.

Sept.

25

Received dividends of $0.45 per share on Celeste Inc. stock.

Dec.

31

At the end of the accounting period, the fair value of the remaining 1,100 shares of Celeste Inc. stock was $31,677.

Required:

 

Journalize the entries to record the above selected equity investment transactions completed by Quan during a recent year using 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. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar.

CHART OF ACCOUNTS

 

Quan Corp.

 

General Ledger

 

 

 

 

ASSETS

110

Cash

111

Petty Cash

120

Accounts Receivable

121

Allowance for Doubtful Accounts

131

Notes Receivable

132

Interest Receivable

141

Merchandise Inventory

145

Office Supplies

146

Store Supplies

151

Prepaid Insurance

161

Investments-Celeste Inc. Stock

165

Valuation Allowance for Equity Investments

166

Valuation Allowance for Available-for-Sale Investments

181

Land

191

Store Equipment

192

Accumulated Depreciation-Store Equipment

193

Office Equipment

194

Accumulated Depreciation-Office Equipment

 

LIABILITIES

210

Accounts Payable

221

Notes Payable

231

Interest Payable

241

Salaries Payable

251

Sales Tax Payable

 

EQUITY

311

Common Stock

312

Paid-In Capital in Excess of Par-Common Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Treasury Stock

332

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

350

Unrealized Gain (Loss) on Available-for-Sale Investments

351

Cash Dividends

352

Stock Dividends

 

REVENUE

410

Sales

611

Interest Revenue

612

Dividend Revenue

621

Income of Celeste Inc.

631

Gain on Sale of Investments

641

Unrealized Gain on Equity Investments

 

EXPENSES

511

Cost of Merchandise Sold

512

Bad Debt Expense

515

Credit Card Expense

516

Cash Short and Over

520

Salaries Expense

531

Advertising Expense

532

Delivery Expense

533

Repairs Expense

534

Selling Expenses

535

Rent Expense

536

Insurance Expense

537

Office Supplies Expense

538

Store Supplies Expense

561

Depreciation Expense-Store Equipment

562

Depreciation Expense-Office Equipment

590

Miscellaneous Expense

710

Interest Expense

721

Loss of Celeste Inc.

731

Loss on Sale of Investments

741

Unrealized Loss on Equity Investments

 

 

Journalize the entries to record the transactions. 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
a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
REF
DEBIT
CREDIT
ASSETS LIABILITIESQUITY
1
2
3
4
5
7
8
9
10
11
12
13
Transcribed Image Text:Journalize the entries to record the transactions. 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 a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION REF DEBIT CREDIT ASSETS LIABILITIESQUITY 1 2 3 4 5 7 8 9 10 11 12 13
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