e http://ezto.mheducation.com/hm.tpx c e Exam 3 Chapters 10-13-A. The following
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e http://ezto.mheducation.com/hm.tpx c e Exam 3 Chapters 10-13-A. The following information applies to the questions displayed below On August 4, 2014, Cable Corporation purchased 2,000 shares of Satre Company for $48,000. The following information applies to the fair value of Satre Company 12/31/2014 12/31/2015 12/3/2016 Per Share s 30 25 20 Satre Company declares and pays cash dividends of $3 per share on June 1 of each year, Required: 1. Prepare journal entries to record the facts in the case, assuming that Cappio considers the shares to be available-for-sale securities TIP: Net unrealized losses/gains on available-for-sale securities are reported in stockholders' equity. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of 2,000 shares of Maxwell Company for $48,000. The company considers the shares to be available-for-sale securities. Note: Enter debits before credits Date General Journal Debit Credit August 04, 2014 Record entry Clear entry View general journalExplanation / Answer
Date General Journal Debit Credit August 04, 2014 Investment- Available for sale $48,000 Cash (2000 x $24) $48,000 December 31, 2014 Investment- Available for sale $12,000 Unrealised gain/loss- Other comprehensive income $12,000 ( $30 - $24 ) x 2000 June 1, 2015 Cash $6,000 Dividend Income (2000 x $3) $6,000 December 31, 2015 Unrealised gain/loss- Other comprehensive income $10,000 Investment- Available for sale $10,000 ( $30 - $25 ) x 2000 June 1, 2016 Cash $6,000 Dividend Income (2000 x $3) $6,000 December 31, 2015 Unrealised gain/loss- Other comprehensive income $10,000 Investment- Available for sale $10,000 ( $25 - $20 ) x 2000
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