Kingbird Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Kingbird does not have significant
Question:
Kingbird Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Kingbird does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share.
Prepare Kingbird's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No. | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
(a) | enter an account title to record the purchase of the investment | enter a debit amount | enter a credit amount |
enter an account title to record the purchase of the investment | enter a debit amount | enter a credit amount | |
(b) | enter an account title to record the dividends received | enter a debit amount | enter a credit amount |
enter an account title to record the dividends received | enter a debit amount | enter a credit amount | |
(c) | enter an account title to record the fair value adjustment | enter a debit amount | enter a credit amount |
enter an account title to record the fair value adjustment | enter a debit amount | enter a credit amount |
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen