Prepare the journal entry for the following trading securities investment transactions of Johnson Brothers Department Stores: (1)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the indefinite future. (ii)Received cash dividend of €1.40 per share on the Jefferson investment. (iii)At year-end, adjusted the investment account to fair market value of €40 per share.
Prepare the journal entry for the following trading securities investment transactions of Johnson Brothers Department Stores: (1)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the indefinite future. (ii)Received cash dividend of €1.40 per share on the Jefferson investment. (iii)At year-end, adjusted the investment account to fair market value of €40 per share.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 15E
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Transcribed Image Text:Prepare the journal entry for the following trading securities investment transactions of Johnson
Brothers Department Stores:
(1)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the
indefinite future.
(ii)Received cash dividend of €1.40 per share on the Jefferson investment.
(ii)At year-end, adjusted the investment account to fair market value of €40 per share.
(iv)old the Jefferson shares for the market price of €20 per share.
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