Brief Exercise 15-11 Swifty Inc. owns shares of Nash Corporation stock. At Decem

Question

Brief Exercise 15-11 Swifty Inc. owns shares of Nash Corporation stock. At December 31, 2017, the securities were carried in Swifty's accounting records at their cost of $712,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was $1,430,000, Swifty declared a property dividend whereby the Nash securities are to be distributed on October 23, 2018, to stockholders of record on October 8, 2018. Prepare all journal entries necessary on those three dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit To record gain or loss) To record property dividend)

Explanation / Answer

Date Accounting titles & explanations Debit Credit 21-Sep Equity investments 718000 unrealized holding gain or loss 718,000 21-Sep Retained earnings 1,430,000 property dividends payable 1,430,000 8-Oct No entry 23-Oct propeerty Dividends payable 1,430,000 Equity investments 1,430,000

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.