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National Financial Services, Inc. invested $30,000 to acquire 3,750 shares of Stonebridge Investments, Inc. on March 15 at $8 per share. This investment represents less than 20% of the investee's voting stock. On May 7, National Financial Services, Inc. sells 2,250 shares for $18,250. When the journal entry to record the sale is made,

National Financial Services, Inc. invested $30,000 to acquire 3,750 shares of Stonebridge Investments, Inc. on March 15 at $8 per share. This investment represents less than 20% of the investee's voting stock. On May 7, National Financial Services, Inc. sells 2,250 shares for $18,250. When the journal entry to record the sale is made,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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National Financial Services, Inc. invested $30,000 to acquire 3,750 shares of Stonebridge Investments, Inc. on March 15 at $8 per share. This investment represents less than 20% of the investee's voting stock. On May 7, National Financial Services, Inc. sells 2,250 shares for $18,250. When the journal entry to record the sale is made, Cash will be credited Gain on Disposal will be credited Equity Investments will be debited Loss on Disposal will be debited
Transcribed Image Text:National Financial Services, Inc. invested $30,000 to acquire 3,750 shares of Stonebridge Investments, Inc. on March 15 at $8 per share. This investment represents less than 20% of the investee's voting stock. On May 7, National Financial Services, Inc. sells 2,250 shares for $18,250. When the journal entry to record the sale is made, Cash will be credited Gain on Disposal will be credited Equity Investments will be debited Loss on Disposal will be debited
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