Creative Investments completed these long-term, available-for-sale investment transactions during 2014: Jan. 14 Purchased 500 shares of Microscape
Question:
Creative Investments completed these long-term, available-for-sale investment transactions during 2014:
Jan. 14 Purchased 500 shares of Microscape stock, paying $ 54 per share. The investment represents 2% ownership in Microscape’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 Microscape stock.
Dec. 31 Adjusted the investment to its current market value of $ 52 per share.
31 Microscape reported net income of $ 200,000 for the year ended 2014.
Requirements
1. Journalize Creative’s investment transactions. Explanations are not required.
2. Classify and prepare partial financial statements for Creative’s Microscape investment as of December 31, 2014. Assume Creative Investment’s net income for the year is $ 80,000.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...
Step by Step Answer:
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura