Cole Inc. owns shares of Marlin Corporation stock classified as available-for-sale securities. At December 31, 2010, the

Question:

Cole Inc. owns shares of Marlin Corporation stock classified as available-for-sale securities. At December 31, 2010, the available-for-sale securities were carried in Cole’s accounting records at their cost of $875,000, which equals their market value. On September 21, 2011, when the market value of the securities was $1,200,000, Cole declared a property dividend whereby the Marlin securities are to be distributed on October 23, 2011, to stockholders of record on October 8, 2011. Prepare all journal entries necessary on those three dates.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...