Entries for equity investments: less than 20% ownership Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Purchased for cash 1,200 shares of Celeste Inc.'s common stock for $45 per share plus a $600 brokerage commission. Celeste Inc. has 86,000 shares of common stock outstanding. Feb. 2 Mar. 6 Received dividends of $0.20 per share on Celeste Inc. stock. Purchased 700 shares of Celeste Inc. stock for $55 per share plus a $350 brokerage commission. Sold 1,400 shares of Celeste Inc. stock for $60 per share less a $700 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.30 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $30,250. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar. June 7 July 26

Entries for equity investments: less than 20% ownership Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Purchased for cash 1,200 shares of Celeste Inc.'s common stock for $45 per share plus a $600 brokerage commission. Celeste Inc. has 86,000 shares of common stock outstanding. Feb. 2 Mar. 6 Received dividends of $0.20 per share on Celeste Inc. stock. Purchased 700 shares of Celeste Inc. stock for $55 per share plus a $350 brokerage commission. Sold 1,400 shares of Celeste Inc. stock for $60 per share less a $700 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.30 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $30,250. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar. June 7 July 26

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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