Homework Answers
Solution:
| Journal Entries - Tech Company | |||
| Date | Particulars | Debit | Credit |
| 1-Sep-20 | Investment in shares of Eagle Inc. Dr | $120,000.00 | |
| To Cash | $120,000.00 | ||
| (To record investment in shares) | |||
| 1-Nov-20 | Cash Dr | $62,712.00 | |
| To Investment in shares of Eagle Inc. | $60,000.00 | ||
| To Gain on sale of investment | $2,712.00 | ||
| (To record sale of investment) | |||
| 31-Dec-20 | Cash Dr | $3,000.00 | |
| To Dividend revenue | $3,000.00 | ||
| (To record dividend received) | |||
| 31-Dec-20 | Fair value adjustment Dr | $6,000.00 | |
| To Unrealized holding gain or loss - OCI | $6,000.00 | ||
| (To record adjustment to fair value) | |||
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1/1/18 Cost
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12/6/18 Dividend
received
$160,000
12/31/18 Share of income
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12/5/19 Dividend
received
250,000
12/31/19 Share of income
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