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.



$1.99
Sales1
Views93
Comments0
  • CreatedJanuary 16, 2015
  • Files Included
Post your question
5000