1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment: Number of Cost of Total Cost $ 8,000 24,000 17,600 Company Shares 400 Share $20 A в 2,000 12 800 22 These securities are classified as available for sale. Required: a. Prepare the journal entry to record the acquisition of the stock. b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Castle to record the dividend receipt. c. On December 31, 2020, the market values per share were: Market Value $22 Company B 12 20 Prepare any journal entry or entries necessary to record these changes in market value.

1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment: Number of Cost of Total Cost $ 8,000 24,000 17,600 Company Shares 400 Share $20 A в 2,000 12 800 22 These securities are classified as available for sale. Required: a. Prepare the journal entry to record the acquisition of the stock. b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Castle to record the dividend receipt. c. On December 31, 2020, the market values per share were: Market Value $22 Company B 12 20 Prepare any journal entry or entries necessary to record these changes in market value.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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