Equity Investments: Less than 20% ownership On September 12, 2,500 shares of Denver Company’s common stock are acquired at a price of $44 per share plus a $125 brokerage commission. On October 15, an $0.80-per-share dividend was received on the Denver Company stock. On November 10, 1,000 shares of the Denver Company stock were sold for $39 per share less a $50 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,500 shares of Denver Company’s stock was $38 per share. Denver Company has 370,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank. Sep. 12   Investments-Denver Company Stock Investments-Denver Company Stock     Cash Cash Oct. 15   Cash Cash     Dividend Revenue Dividend Revenue Nov. 10   Cash Cash     Loss on Sale of Investments Loss on Sale of Investments     Investments-Denver Company Stock Investments-Denver Company Stock Dec. 31   Unrealized Gain on Equity Investments Unrealized Gain on Equity Investments     Valuation Allowance for Equity Investments Valuation Allowance for Equity Investments

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.