On August 1, Cullumber Company buys 1,0000 shares of Estrada common stock for $37,000 cash. On December 1, Cullumber sells the stock investments for $40,000 in cash. Journalize the purchase and sale of the common stock. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
On August 1, Cullumber Company buys 1,0000 shares of Estrada common stock for $37,000 cash. On December 1, Cullumber sells the stock investments for $40,000 in cash. Journalize the purchase and sale of the common stock. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On August 1, Cullumber Company buys 1,000 shares of Estrada common stock for $37,000 cash. On December 1, Cullumber sells the
stock investments for $40,000 in cash.
Journalize the purchase and sale of the common stock. (List all debit entries before credit entries. Credit account titles are automatically
indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required,
select "No entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Debit
Credit
Date
Transcribed Image Text:Sandhill Company owns 25% of Lauer Company. For the current year, Lauer reports net income of $195,000 and declares and pays a
$39,000 cash dividend.
Record Sandhill's equity in Lauer's net income and the receipt of dividends from Lauer. (List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
(To record equity in Lauer's net income)
Dec. 31
(To record dividends received)
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