Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Feb. 2 Mar. 6 June 7 July 26 Purchased for cash 1,600 shares of Celeste Inc.'s common stock for $44 per share plus a $800 brokerage commission. Celeste Inc. has 84,000 shares of common stock outstanding. Feb. 2 Received dividends of $0.20 per share on Celeste Inc. stock. Purchased 1,050 shares of Celeste Inc. stock for $54 per share plus a $525 brokerage commission. Sept. 25 Dec. 31 At the end of the accounting period, the fair value of the remaining 850 shares of Celeste Inc. stock was $49,325. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar. 88 Mar, 6 Sold 1,800 shares of Celeste Inc. stock for $60 per share less a $900 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Received dividends of $0.30 per share on Celeste Inc. stock. Investments-Celeste Inc Stock Cash Cash Dividend Revenue
Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Feb. 2 Mar. 6 June 7 July 26 Purchased for cash 1,600 shares of Celeste Inc.'s common stock for $44 per share plus a $800 brokerage commission. Celeste Inc. has 84,000 shares of common stock outstanding. Feb. 2 Received dividends of $0.20 per share on Celeste Inc. stock. Purchased 1,050 shares of Celeste Inc. stock for $54 per share plus a $525 brokerage commission. Sept. 25 Dec. 31 At the end of the accounting period, the fair value of the remaining 850 shares of Celeste Inc. stock was $49,325. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar. 88 Mar, 6 Sold 1,800 shares of Celeste Inc. stock for $60 per share less a $900 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Received dividends of $0.30 per share on Celeste Inc. stock. Investments-Celeste Inc Stock Cash Cash Dividend Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mar. 6
Cash
July 26
Dividend Revenue
June 7 Investments-Celeste Inc. Stock
Cash
Cash
Gain on Sale of Investments
Investments-Celeste Inc. Stock
Sept. 25 Cash
Dividend Revenue
Dec. 31 Valuation Allowance for Equity Investments
Unrealized Gain on Equity Investments
Feedback
00 00 000
00 00 000 00
Check My Work
When recording the purchase of the investment, consider the amount of the brokerage commission.
Record the revenue earned.
When recording the cash received, consider the commission. To complete the entry determine and gain or loss to be recorded.
Transcribed Image Text:Entries for equity investments: less than 20% ownership
Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a
recent year using the fair value method.
Feb. 2
Mar. 6
June 7
July 26
Purchased 1,050 shares of Celeste Inc. stock for $54 per share plus a $525 brokerage commission.
Sold 1,800 shares of Celeste Inc. stock for $60 per share less a $900 brokerage commission. Quan assumes that the
first investments purchased are the first investments sold.
Received dividends of $0.30 per share on Celeste Inc. stock.
At the end of the accounting period, the fair value of the remaining 850 shares of Celeste Inc. stock was $49,325.
If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar.
88
Purchased for cash 1,600 shares of Celeste Inc.'s common stock for $44 per share plus a $800 brokerage commission.
Celeste Inc. has 84,000 shares of common stock outstanding.
Received dividends of $0.20 per share on Celeste Inc. stock.
Sept. 25
Dec. 31
Feb. 2
Mar, 6
June 7
Investments-Celeste Inc. Stock
July 26
Cash
Cash
Dividend Revenue
Investments Celeste Inc. Stock
Cash -V
Cash
Gain on Sale of Investments
00 000
00 000
88
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