Eastwind Corporation purchased 400 common shares of Ditch Inc. for $l3,200 on February 21. Eastwind paid a 1% commission on the share purchase and, because the shares were not publicly traded, decided to account for them using the costlan10rtized cost method. On June 30, Ditch declared and paid a cash dividend of $1.50 per share. Prepare Eastwind Corporation~ journal entries to record
(a) The purchase of the investment,
(b) The dividends received, and
(c) The sale of the Ditch Inc. shares in early January the following year for $ 15,100 less a 1% commission paid on the sale.

  • CreatedSeptember 18, 2015
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