jan 14 purchased 500 shares of microscape stock, paying $54 per share. the inves

Question

jan 14 purchased 500 shares of microscape stock, paying $54 per share. the investment represents 2% ownership in microscope's voting stock. creative intends to hold the investment for the indefinite future. Aug 22 received a cash dividend of $0.30 per share on the microscope stock. Dec 31 adjusted the investment to its current market value of $52 per share. Dec 31 Microscapereported net income of $200,00 for the year ended 2014. Journalize this problem. classify and prepare partial financial statements for microscope investment as of dec 31 2014. Assume creative investments net income ifor the year is $80,000.

Explanation / Answer

Date Accounts Title & Explanation Debit Credit Jan, 14 Investment: (500*54) 27000 Cash 27000 (To record the purchase of 500 Shares at $54 per share) Aug, 22 Cash 150 Dividend Income: (500 Shares*$0.30) 150 (To record receipt of dividend) Dec, 31 Unrealized Loss - OCI : 500*(54-52) 1000 Investment 1000 (To record $2 per share decrease in the value of 500 Shares)

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.