Accounting for securities available for sale. Events related to Elston Corporation's investments of temporarily excess cash appear
Question:
Accounting for securities available for sale. Events related to Elston Corporation's investments of temporarily excess cash appear below. The firm classifies these investments as securities available for sale and does not adopt the fair value option.
Elston received no dividends on Security A. It received dividends from Security 11 of S 1000 on December 31, 2008, and $1,200 on December 31, 2009 Prepare dated journal entries for the following events related to these investments, assuming that the accounting period is the calendar year.
a. Acquisition of securities
b. Receipt of dividends
c. Revaluation on December 31
d. Sale ofsecurities
Step by Step Answer:
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis