Brief Exercise 15-11 Sunland Inc. owns shares of Coronado Corporation stock. At

Question

Brief Exercise 15-11 Sunland Inc. owns shares of Coronado Corporation stock. At December 31, 2017, the securities were carried in Sunland’s accounting records at their cost of $887,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was $1,311,000, Sunland declared a property dividend whereby the Coronado 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 Account Titles and Explanation Debit Credit Sep. 21, 2018 Investment in Coronado Corporation 424000 Gain on appreciation (1311000 - 887000) 424000 (To record investment at fair value) Sep. 21, 2018 Retained earnings 1311000 Dividends payable 1311000 (To record declaration of property dividend) Oct. 8, 2018 No journal entry required Oct. 23, 2018 Dividends payable 1311000 Investment in Coronado Corporation 1311000 (To record distribution of property dividend)

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