York Corporation declares a property dividend on June 30, payable in bonds of Laurens Company, which are classified as “available for sale.” The bonds are recorded at a fair value of $58,000 (there is a $0 balance in Allowance for Change in the Value of Investment in Available-for-Sale Securities), but at the time of the property dividend have a current value of $67,000. Prepare the journal entries to record the declaration of this property dividend.
York Corporation declares a property dividend on June 30, payable in bonds of Laurens Company, which are classified as “available for sale.” The bonds are recorded at a fair value of $58,000 (there is a $0 balance in Allowance for Change in the Value of Investment in Available-for-Sale Securities), but at the time of the property dividend have a current value of $67,000. Prepare the journal entries to record the declaration of this property dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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York Corporation declares a property dividend on June 30, payable in bonds of Laurens Company, which are classified as “available for sale.” The bonds are recorded at a fair value of $58,000 (there is a $0 balance in Allowance for Change in the Value of Investment in Available-for-Sale Securities), but at the time of the property dividend have a current value of $67,000.
Prepare the journal entries to record the declaration of this property dividend.
Expert Solution
Step 1: Introduction:
A company's operations are documented via journal entries. These transactions are recorded in a book or journal. These entries indicate the initial phase of the accounting cycle. Double-entry accounting, in which each transaction is recorded in a minimum of two different accounts, is the standard for journal entries.
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