A company purchased 17,500 of common shares in Danis Corporation on September 1, 2015 for $17,500...
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A company purchased 17,500 of common shares in Danis Corporation on September 1, 2015 for $17,500 plus $100 in brokerage fees. This investment was properly classified as a short-term investment. At December 31, 2015, the end of the investor's fiscal year, the investment had risen in value to $18,600. On March 1, 2016, the company received $700 in cash dividends from the investment. On April 1, 2016, the investment was sold for $16,400 less $100 in brokerage fees. Additonal information : The Company uses the following accounts: Brokerage Commissions Expense Short-Term Investments Unrealized loss on Fair-Value Adjustment Unrealized gain on Fair-Value Adjustment Fair-Value Valuation Allowance Gain on Sale of Short-Term Investments Loss on Sale of Short-Term Investments Required: Show all calculations; No explanation is required. Prepare journal entries for 2015 (Sep.1 and Dec.31) through 2016 (March.1 and April 1) relating to the above transactions. A company purchased 17,500 of common shares in Danis Corporation on September 1, 2015 for $17,500 plus $100 in brokerage fees. This investment was properly classified as a short-term investment. At December 31, 2015, the end of the investor's fiscal year, the investment had risen in value to $18,600. On March 1, 2016, the company received $700 in cash dividends from the investment. On April 1, 2016, the investment was sold for $16,400 less $100 in brokerage fees. Additonal information : The Company uses the following accounts: Brokerage Commissions Expense Short-Term Investments Unrealized loss on Fair-Value Adjustment Unrealized gain on Fair-Value Adjustment Fair-Value Valuation Allowance Gain on Sale of Short-Term Investments Loss on Sale of Short-Term Investments Required: Show all calculations; No explanation is required. Prepare journal entries for 2015 (Sep.1 and Dec.31) through 2016 (March.1 and April 1) relating to the above transactions.
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Journal Entries Sep 1 2015 ShortTerm Investments 17500 Brokerage Commiss... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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