On January 1, 2019, Miller Inc. acquired 1,500 shares of the outstanding common stock of Graceland Industries

Question:

On January 1, 2019, Miller Inc. acquired 1,500 shares of the outstanding common stock of Graceland Industries for $16 per share, or $24,000. On that date, Graceland had 10,000 shares of common stock outstanding. On October 1, 2019, Graceland declared and paid a cash dividend of $2 per share. On November 13, 2019, Miller sold 300 shares of Graceland for $5,000. Graceland reported 2019 net income of $36,000. Graceland's stock sold for $15 per share at December 31, 2019. This is Miller's only investment, and Miller plans on remaining invested in Graceland for a number of years.

Required:

1. Prepare Miller's journal entries to record the transactions related to its investment in Graceland.

2. Give the title and amount of each item (except Cash) related to this investment on the December 31, 2019 balance sheet. Name the balance sheet section in which each item appears.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...