Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments in
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Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2024.
March 1 | Purchases 2,200 shares (10%) of Power Drive Corporation's common stock for $54 per share. |
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July 1 | Receives a cash dividend of $1.60 per share. |
December 31 | The fair value of Power Drive Corporation's common stock is $67 per share. |
On February 1, 2025 (the following year), Gator Shoes sells 550 shares of Power Drive Corporation's common stock for $62 per share.
Required:
- Record each of these transactions in 2024, including an adjusting entry on December 31 for the investment's fair value, if appropriate.
- Record the sale on February 1, 2025.
Related Book For
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
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