On January 1, 2016, Maple Company invests $16,000 in Sprouts, Inc. stock. Sprouts pay Maple a $300
Question:
On January 1, 2016, Maple Company invests $16,000 in Sprouts, Inc. stock. Sprouts pay Maple a $300 dividend on August 1, 2016. Maple sells the Sprouts’s stock on August 31, 2016, for $16,500. Assume the investment is categorized as a trading investment.
Requirements
1. Journalize the transactions for Maple’s investment in Sprouts’s stock.
2. What was the net effect of the investment on Maple’s net income for the year ended December 31, 2016?
DividendA 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...
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Related Book For 
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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