Bonneau Company had the following transactions relating to investments in available-for-sale securities during the year. Prepare the required general journal entries for these transactions: July 4 Bonneau purchased 400 shares of Crossley Company stock at $120 per share plus a $400 brokerage fee. These stocks will be classified as Available-for-Sale securities. Sept 15 Bonneau received a $1.50 per share cash dividend on the Crossley Company stock. Dec 31 The fair value of the Crossley Company stock (the only investment that Bonneau owns) is $125 per share. The balance of the Fair value Adjustment—AFS account had a zero balance prior to adjustment.
Bonneau Company had the following transactions relating to investments in available-for-sale securities during the year. Prepare the required general journal entries for these transactions: July 4 Bonneau purchased 400 shares of Crossley Company stock at $120 per share plus a $400 brokerage fee. These stocks will be classified as Available-for-Sale securities. Sept 15 Bonneau received a $1.50 per share cash dividend on the Crossley Company stock. Dec 31 The fair value of the Crossley Company stock (the only investment that Bonneau owns) is $125 per share. The balance of the Fair value Adjustment—AFS account had a zero balance prior to adjustment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bonneau Company had the following transactions relating to investments in
available-for-sale securities during the year. Prepare the required general
transactions:
July 4 Bonneau purchased 400 shares of Crossley Company stock at $120 per share plus a $400
brokerage fee. These stocks will be classified as Available-for-Sale securities.
Sept 15 Bonneau received a $1.50 per share cash dividend on the Crossley Company stock.
Dec 31 The fair value of the Crossley Company stock (the only investment that Bonneau owns)
is $125 per share. The balance of the Fair value Adjustment—AFS account had a zero balance
prior to adjustment.
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