Question

16-OL - Webredt Design e d 10% of the standing common sack of Cane Company wary 1, 2020, by paying 3624.000 for the 41,000 shares. Crane declared and paid $0.50 per dare cash dividends on March 15, June 15, September 15, and December 15, 2020. Crane reported net income of 2,500 for the war At December 31, 2020, the market or of Cre e k was 25 per share. p them for rede for 2000 De ated in the problem. C o n titles are automatically indeed when for the accounts and enter for the amounts) care n e ver Grane is entered. Do not indre manually. If domates in the order any is nie selecto ry

Answer 1

Journal entries
date	Account titles and explanation			Debit	Credit
01-Jan	available for sale securities			624000
	cash				624000
15-Mar	cash (41600*0.50)			20800
	dividend revenue				20800
15-Jun	cash			20800
	dividend revenue				20800
15-Sep	cash			20800
	dividend revenue				20800
31-Dec	securities fair value adjustment available			416000
	unrealised holding gain /loss -equity				416000
	(41600*25)-624000