Journalize the following long-term, equity security transactions of Jeakin Department Stores:a. Purchased 450 shares of Fordham Fine Foods common stock at $33 per share (less than10% of Fordham’s outstanding stock), with the intent of holding the stock for the indefinite future.b. Received a cash dividend of $1.30 per share on the Fordham investment.c. At year-end, adjusted the investment account to fair value of $39 per share.d. Sold the Fordham stock for $28 per share.
Journalize the following long-term, equity security transactions of Jeakin Department Stores:a. Purchased 450 shares of Fordham Fine Foods common stock at $33 per share (less than10% of Fordham’s outstanding stock), with the intent of holding the stock for the indefinite future.b. Received a cash dividend of $1.30 per share on the Fordham investment.c. At year-end, adjusted the investment account to fair value of $39 per share.d. Sold the Fordham stock for $28 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Journalize the following long-term, equity security transactions of Jeakin Department Stores:
a. Purchased 450 shares of Fordham Fine Foods common stock at $33 per share (less than
10% of Fordham’s outstanding stock), with the intent of holding the stock for the indefinite future.
b. Received a cash dividend of $1.30 per share on the Fordham investment.
c. At year-end, adjusted the investment account to fair value of $39 per share.
d. Sold the Fordham stock for $28 per share.
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