Pina Corporation purchased 420 shares of Sherman Inc. common stock for $13,700(Pina does not have...
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Accounting
Pina Corporation purchased shares of Sherman Inc. common stock for $Pina does not have significant influence During the year, Sherman paid a cash dividend of $ per share. At yearend, Sherman stock was selling for $ per share.
Prepare Pina' 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 all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts.
No Account Titles and Explanation
Debit
Credit
a Equity Investments
Cash
b Cash
Dividend Revenue
c No Entry
No Entry
Answer & Explanation
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