90.2K

Verified Solution

Link Copied!

Entries for Equity Investments: Less than $20\%$ Ownership

On February $22,$ Triangle Corporation acquired $34,000$ shares of the $500,000$ outstanding common stock of Jupiter Co$.$ at $$25$ plus commission charges of $$680.$ On June $1,$ a cash dividend of $$1\mathrm{.}70$ per share was received. On November $12,7,000$ shares were sold at $$31$ less commission charges of $$100.$ At the end of the accounting period on December $31,$ the fair value of the remaining $27,000$ shares of Jupiter Company$$s stock was $$25\mathrm{.}52$ per share.

In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.

Question Content Area

a$.$ Using the cost method, journalize the entry for the purchase of stock. If an amount box does not require an entry, leave it blank.

Feb. $22$

Question Content Area

b$.$ Using the cost method, journalize the entry for the receipt of dividends. If an amount box does not require an entry, leave it blank.

June $1$

Question Content Area

c$.$ Using the cost method, journalize the entry for the sale of $7,000$ shares. If an amount box does not require an entry, leave it blank.

Nov. $12$

Question Content Area

d$.$ Using the cost method, journalize the entry for the change in fair value. If an amount box does not require an entry, leave it blank.

Dec. $31$

Answer & Explanation Solved by verified expert

See Answer