Brief Exercise 17-6 Crane Corporation purchased 360 shares of Sherman Inc. commo

Question

Brief Exercise 17-6 Crane Corporation purchased 360 shares of Sherman Inc. common stock for $11,800 (Crane does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. Assume the stock is nonmarketable. Prepare Crane's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (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 O for the amounts.) No. Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

No Accounts Titles & Explanation Debit ($) Credit ($) (a) Equity Investment 11,800 Cash 11,800 (b) Cash (360 shares * $3.25) 1,170 Dividend Revenue 1,170 (c) NO Entry

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