On August 1, Shamrock Finance Inc. buys 2,500 Datawave common shares for trading purposes for $95,000 cash. On October 15, Shamrock receives a cash dividend of $2.35 per share from Datawave. On December 1, Shamrock sells the shares for $100,000 cash. Prepare the journal entry to record the purchase of the shares. (Credit account titles are automatically indented when the 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 Aug. 1 Investment in Associate Cash (To record purchase of investment.) Date Account Titles and Explanation Prepare the journal entry to record the receipt of the dividend. (Credit account titles are automatically indented when the 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) Oct. 15 Cash Gain on Fair Value Adjustment-FVTPL (Collection of dividend.) Dec. 1 Date Account Titles and Explanation Cash Debit Prepare the journal entry to record the sale of the shares. (Credit account titles are automatically indented when the amount is entered. De not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts) Investment in Associate (To record sale of investment.) Debit Credit Debit Credit Credit
On August 1, Shamrock Finance Inc. buys 2,500 Datawave common shares for trading purposes for $95,000 cash. On October 15, Shamrock receives a cash dividend of $2.35 per share from Datawave. On December 1, Shamrock sells the shares for $100,000 cash. Prepare the journal entry to record the purchase of the shares. (Credit account titles are automatically indented when the 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 Aug. 1 Investment in Associate Cash (To record purchase of investment.) Date Account Titles and Explanation Prepare the journal entry to record the receipt of the dividend. (Credit account titles are automatically indented when the 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) Oct. 15 Cash Gain on Fair Value Adjustment-FVTPL (Collection of dividend.) Dec. 1 Date Account Titles and Explanation Cash Debit Prepare the journal entry to record the sale of the shares. (Credit account titles are automatically indented when the amount is entered. De not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts) Investment in Associate (To record sale of investment.) Debit Credit Debit Credit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On August 1, Shamrock Finance Inc. buys 2,500 Datawave common shares for trading purposes for $95,000 cash. On October 15,
Shamrock receives a cash dividend of $2.35 per share from Datawave. On December 1, Shamrock sells the shares for $100,000 cash.
Prepare the journal entry to record the purchase of the shares. (Credit account titles are automatically indented when the 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
Aug. 1
Investment in Associate
Cash
(To record purchase of investment.)
Date Account Titles and Explanation
Oct. 15
Prepare the journal entry to record the receipt of the dividend. (Credit account titles are automatically indented when the 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.)
Cash
Gain on Fair Value Adjustment-FVTPL
(Collection of dividend.)
Dec. 1
Date Account Titles and Explanation
Cash
Debit
Investment in Associate
Prepare the journal entry to record the sale of the shares. (Credit account titles are automatically indented when the amount is entered. De
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
(To record sale of investment.)
Debit
*
Credit
Debit
Credit
Credit
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