Ren Inc. owns shares of Stimpy Corporation stock classified as available-for-sale securities. At December 31, 2007, the

Question:

Ren Inc. owns shares of Stimpy Corporation stock classified as available-for-sale securities. At December 31, 2007, the available-for-sale securities were carried in Ren’s accounting records at their cost of $875,000, which equals their market value. On September 21, 2008, when the market value of the securities was $1,400,000, Ren declared a property dividend whereby the Stimpy securities are to be distributed on October 23, 2008, to stockholders of record on October 8, 2008. 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...