Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021. March 1 Purchases 2,100 shares (10%) of Power Drive Corporation’s common stock for $53 per share. July 1 Receives a cash dividend of $1.55 per share. December 31 The fair value of Power Drive Corporation’s common stock is $66 per share. On February 1, 2022, Gator Shoes sells 525 shares of Power Drive Corporation’s common stock for $61 per share. Required: 1. Record each of these transactions in 2021, including an adjustment on December 31 for the investment’s fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2. Record the sale on February 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021. March 1 Purchases 2,100 shares (10%) of Power Drive Corporation’s common stock for $53 per share. July 1 Receives a cash dividend of $1.55 per share. December 31 The fair value of Power Drive Corporation’s common stock is $66 per share. On February 1, 2022, Gator Shoes sells 525 shares of Power Drive Corporation’s common stock for $61 per share. Required: 1. Record each of these transactions in 2021, including an adjustment on December 31 for the investment’s fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2. Record the sale on February 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 13P
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Question
ator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021.
| March | 1 | Purchases 2,100 shares (10%) of Power Drive Corporation’s common stock for $53 per share. | ||
| July | 1 | Receives a cash dividend of $1.55 per share. | ||
| December | 31 | The fair value of Power Drive Corporation’s common stock is $66 per share. |
On February 1, 2022, Gator Shoes sells 525 shares of Power Drive Corporation’s common stock for $61 per share.
Required:
1. Record each of these transactions in 2021, including an adjustment on December 31 for the investment’s fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No
2. Record the sale on February 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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