Wildhorse Inc. owns shares of Sheffield Corporation stock. At December 31, 2020, the securities were carried...
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Wildhorse Inc. owns shares of Sheffield Corporation stock. At December 31, 2020, the securities were carried in Wildhorse's accounting records at their cost of $779,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,193,000, Wildhorse declared a property dividend whereby the Sheffield securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021. Prepare all journal entries necessary on those three dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record gain or loss) (To record property dividend) Wildhorse Inc. owns shares of Sheffield Corporation stock. At December 31, 2020, the securities were carried in Wildhorse's accounting records at their cost of $779,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,193,000, Wildhorse declared a property dividend whereby the Sheffield securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021. Prepare all journal entries necessary on those three dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record gain or loss) (To record property dividend)
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Journal Enteciese Debit Credit Date Account titles end Explarabion 2021 Equity inv... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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