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. Feb. 2 Purchased for cash 1,050 shares of Celeste Inc.’s common stock for $75 per share plus a $525 brokerage commission. Celeste Inc. has 82,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.20 per share on Celeste Inc. stock. June 7 Purchased 650 shares of Celeste Inc. stock for $87 per share plus a $325 brokerage commission. July 26 Sold 1,200 shares of Celeste Inc. stock for $93 per share less a $600 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 $46,250. If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar. Feb. 2 - Select - - Select - - Select - - Select - Mar. 6 - Select - - Select - - Select - - Select - June 7 - Select - - Select - - Select - - Select - July 26 - Select - - Select - - Select - - Select - - Select - - Select - Sept. 25 - Select - - Select - - Select - - Select - Dec. 31 - Select - - Select - - Select - - Select -

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 8E

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Question

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.

Feb. 2	Purchased for cash 1,050 shares of Celeste Inc.’s common stock for $75 per share plus a $525 brokerage commission. Celeste Inc. has 82,000 shares of common stock outstanding.
Mar. 6	Received dividends of $0.20 per share on Celeste Inc. stock.
June 7	Purchased 650 shares of Celeste Inc. stock for $87 per share plus a $325 brokerage commission.
July 26	Sold 1,200 shares of Celeste Inc. stock for $93 per share less a $600 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 $46,250.

If an amount box does not require an entry, leave it blank. When required, round final answers to the nearest dollar.

Feb. 2	- Select -	- Select -
	- Select -	- Select -
Mar. 6	- Select -	- Select -
	- Select -	- Select -
June 7	- Select -	- Select -
	- Select -	- Select -
July 26	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Sept. 25	- Select -	- Select -
	- Select -	- Select -
Dec. 31	- Select -	- Select -
	- Select -	- Select -