Use the data given in E-S-6. On May 21, 2019, Athens Company sold its investment in Technomite

Question:

Use the data given in E-S-6. On May 21, 2019, Athens Company sold its investment in Technomite stock for $28 per share.

1. Journalize the sale. No explanation is required.

2. How does the gain or loss you recorded differ from the gain or loss recorded on December 31, 2018?

Data from E-S-6

Athens Company completed these long-term equity investment transactions during 2018:

2018
Apr 10 ............ Purchased 400 shares of Technomite stock (less than 10% of Technomite’s outstanding stock), paying $18 per share. Athens Company intends to hold the investment indefinitely.

Jul 22 .............. Received a cash dividend of $1.21 per share on the Technomite stock.
Dec 31 ............ Adjusted the Technomite investment to its current market value of $4,900.

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...

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