On September 12. 3.000 shares of Denver Company's common steck are acquired at a price of $40 per share plus a $300 brokerage commission. On October 15, an $0.80-per-share dividend was received on the Denver Company stock. On November 10. 1.600 shares of the Denver Company stock were sold for $36 per share less a s150 brokerage commission. At the end of the accounting period on December 31. the fair value of the remaining 1.400 shares of Denver Company's stock wvas $35 per share. Denver Company has 400.000 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.
On September 12. 3.000 shares of Denver Company's common steck are acquired at a price of $40 per share plus a $300 brokerage commission. On October 15, an $0.80-per-share dividend was received on the Denver Company stock. On November 10. 1.600 shares of the Denver Company stock were sold for $36 per share less a s150 brokerage commission. At the end of the accounting period on December 31. the fair value of the remaining 1.400 shares of Denver Company's stock wvas $35 per share. Denver Company has 400.000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Equity investments: Less than 20% ownership
On September 12, 3,000 shares of Denver Company's common stock are acquired at a price of $40 per share plus a $300 brokerage commission. On October 15, an $0.80-per-share dividend was received on the Denver Company stock. On November 10, 1,600 shares of the Denver Company stock were sold for
$36 per share less a $150 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,400 shares of Denver Company's stock was $35 per share. Denver Company has 400,000 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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