Whispering Corporation purchased 410 shares of Sherman Inc. common stock for $12,900 (Whispering does not have significant influence). During the year, Sherman paid a cash dividend of $3.50 per share. At year-end, Sherman stock was selling for $37.00 per share. Assume the stock is nonmarketable. Prepare Whispering's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List oll debit entries before credit entries. Credit account titles
Whispering Corporation purchased 410 shares of Sherman Inc. common stock for $12,900 (Whispering does not have significant influence). During the year, Sherman paid a cash dividend of $3.50 per share. At year-end, Sherman stock was selling for $37.00 per share. Assume the stock is nonmarketable. Prepare Whispering's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List oll debit entries before credit entries. Credit account titles
Chapter1: Financial Statements And Business Decisions
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