On September 12, 2,600 shares of Denver Company’s common stock are acquired at a price of $58 per share plus a $130 brokerage commission. On October 15, an $1.30-per-share dividend was received on the Denver Company stock. On November 10, 1,040 shares of the Denver Company stock were sold for $51 per share less a $52 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,560 shares of Denver Company’s stock was $50 per share. Denver Company has 360,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change
On September 12, 2,600 shares of Denver Company’s common stock are acquired at a price of $58 per share plus a $130 brokerage commission. On October 15, an $1.30-per-share dividend was received on the Denver Company stock. On November 10, 1,040 shares of the Denver Company stock were sold for $51 per share less a $52 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,560 shares of Denver Company’s stock was $50 per share. Denver Company has 360,000 shares of common stock outstanding.
Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank.
Sep. 12
Oct. 15
Nov. 10
Dec. 31
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