Question Princeton Company acquired some of the 62,000 outstanding shares of the

Question

Question Princeton Company acquired some of the 62,000 outstanding shares of the Corporation as trading securities. The accounting period for both companies ends D July 2 Purchased 9,300 shares of Cox common stock at $26 per share. Dec. 15 Cox Corporation declared and paid a cash dividend of $3 per share. Dec. 31 Determined the fair value of Cox stock to be $27 per share. Required: Prepare the journal entries for each of the above transactions. (If no entry is requir transaction/event, select "No Journal Entry Required" in the first account field View transaction list Journal entry worksheet 2 3 Record the purchase of 9,300 shares of Cox common stock at $26 Note: Enter debits before credits Date General Journal Debit Jul 02

Explanation / Answer

Date General Journal Debit Credit 2-Jul Trading securities 241800 Cash 241800 (9300*26) (Purchase of cox common stock) 15-Dec Cash 27900 Dividend income 27900 (9300*3) (Dividend received) 31-Dec Trading securities 9300 Unrealized gain on trading securities 9300 [9300*(27-26) (Recorded fair value change)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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