Sunland, Inc. purchased 1,890 shares of Oneida Corporation common stock for $89,400. During the year, Oneida paid a cash dividend of $1.00 per share. At year-end, Oneida stock was selling for $45.90 per share. Prepare Sunland’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.)

Transcribed Image Text:

(a) (b) (c) Account Titles and Explanation Debit Credit (a) (b) (c) Account Titles and Explanation Debit Credit