On September 12, 3,400 shares of Denver Company's common stock are acquired at a price of...

 

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On September 12, 3,400 shares of Denver Company's common stock are acquired at a price of $58 per share plus a $170 brokerage commission. On October 15, an $1.20-per-share dividend was received on the Denver Company stock. On November 10, 1,360 shares of the Denver Company stock were sold for $53 per share less a $68 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 2,040 shares of Denver Company's stock was $52 per share. Denver Company has 350,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank. Sep. 12 Investments-Denver Company Stock 197,370 Cash Oct. 15 Cash Dividend Revenue Nov. 10 Cash Loss on Sale of Investments Investments-Denver Company Stock Dec. 31 Unrealized Loss on Equity Investments 197,370 4,080 4,080 X Valuation Allowance for Equity Investments X On September 12, 3,400 shares of Denver Company's common stock are acquired at a price of $58 per share plus a $170 brokerage commission. On October 15, an $1.20-per-share dividend was received on the Denver Company stock. On November 10, 1,360 shares of the Denver Company stock were sold for $53 per share less a $68 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 2,040 shares of Denver Company's stock was $52 per share. Denver Company has 350,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank. Sep. 12 Investments-Denver Company Stock 197,370 Cash Oct. 15 Cash Dividend Revenue Nov. 10 Cash Loss on Sale of Investments Investments-Denver Company Stock Dec. 31 Unrealized Loss on Equity Investments 197,370 4,080 4,080 X Valuation Allowance for Equity Investments X