Use the data from E-S-3 for this exercise. At year-end on December 31, 2018, the Sherman common

Question:

Use the data from E-S-3 for this exercise. At year-end on December 31, 2018, the Sherman common stock that Flores holds has a market price of $88.13 per share. Assuming that Flores has no other investments, record the entry to adjust the Sherman common stock to fair value.

Data from E-S-3

Flores Company purchases 900 shares of Sherman Express common stock at the market price of $79.24 on March 23, 2018. (Flores’ investment in Sherman represents less than 5% of the outstanding stock of Sherman; Flores does not have significant influence over Sherman.) Flores intends to hold this investment for more than one year. On June 22, 2018, Flores receives a cash dividend of $0.31 per share of the Sherman stock. Record the entries to

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... 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...

Fantastic news! We've Found the answer you've been seeking!