Question

Strategic Investments completed the following long-term, available-for-sale investment transactions during 2016:
Jan. 14 Purchased 800 shares of Voltexar stock, paying $47 per share. The investment represents 4% ownership in Voltexar's voting stock. Strategic intends to hold the investment for the indefinite future.
Aug. 22 Received a cash dividend of $0.89 per share on the Voltexar stock.
Dec. 31 Adjusted the Voltexar investment to its current market value of $46.
On August 4, 2017, Strategic Investments sold its investment in Voltexar stock for $43 per share.
Requirements
1. Journalize the entries for 2016. Explanations are not required.
2. Journalize the sale that occurred in 2017. Explanations are not required.
3. What account(s) and amount(s), if any, would be reported on Strategics income statement for the year ended December 31, 2017?


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  • CreatedJune 15, 2015
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