Buttercup Corporation purchased 300 shares of Bubbles Inc common stock as an available for sale investment for $9,900 During the year, Bubbles paid a cash dividend of $3 25 per share At year end, Bubbles stock was selling for $34 50 per share Prepare Buttercups journal entries to record (a) The pur...

a AvailableforSale Securities 9900 Cash 9 ...

Buttercup Corporation purchased 300 shares of Bubbles Inc. common stock as an available-for-sale investment for $9,900. During

Question:

Buttercup purchased 300 shares of Bubbles Inc. as an available-for-sale investment for $9,900. During the year, Bubbles paid a cash of $3.25 per share. At year-end, Bubbles stock was selling for $34.50 per share. Prepare Buttercup’s journal entries to record
(a) The purchase of the investment,
(b) The dividends received, and
(c) The fair value adjustment.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...