Entries for Equity Investments: Less than 20% OwnershipOn February 22, Triangle Corporation acquired 34,000...

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Entries for Equity Investments: Less than 20% Ownership
On February 22, Triangle Corporation acquired 34,000 shares ofthe 500,000 outstanding common stock of Jupiter Co. at $25 pluscommission charges of $680. On June 1, a cash dividend of $1.70 pershare was received. On November 12, 7,000 shares were sold at $31less commission charges of $100. At the end of the accountingperiod on December 31, the fair value of the remaining 27,000shares of Jupiter Company’s stock was $25.52 per share.
In your computations, round per share amounts to twodecimal places. When required, round final answers to the nearestdollar.
a. Using the cost method, journalize the entryfor the purchase of stock. If an amount box does not require anentry, leave it blank.
Feb. 22 Investments-Jupiter Co. Stock fill in the blank 1667110a206dfed_2 fill in the blank 1667110a206dfed_3
Cash fill in the blank 1667110a206dfed_5 fill in the blank 1667110a206dfed_6
Feedback
a. When recording the purchase of the investment, consider theamount of the brokerage commission.
b. Using the cost method, journalize the entryfor the receipt of dividends. If an amount box does not require anentry, leave it blank.
June 1 Cash fill in the blank 6a7755068075014_2 fill in the blank 6a7755068075014_3
Dividend Revenue fill in the blank 6a7755068075014_5 fill in the blank 6a7755068075014_6
Feedback
b. Record the revenue earned.
c. Using the cost method, journalize the entryfor the sale of 7,000 shares. If an amount box does not require anentry, leave it blank.
Nov. 12 Cash fill in the blank be3f49fb1079f8b_2 fill in the blank be3f49fb1079f8b_3
Gain on Sale of Investments fill in the blank be3f49fb1079f8b_5 fill in the blank be3f49fb1079f8b_6
Investments-Jupiter Co. Stock fill in the blank be3f49fb1079f8b_8 fill in the blank be3f49fb1079f8b_9
Feedback
c. When recording the cash received, consider the commission. Tocomplete the entry determine and gain or loss to be recorded.
d. Using the cost method, journalize the entryfor the change in fair value. If an amount box does not require anentry, leave it blank.
Dec. 31 Valuation Allowance for Equity Investments fill in the blank 792dfff2bfb7060_2 fill in the blank 792dfff2bfb7060_3
Unrealized Gain on Equity Investments fill in the blank 792dfff2bfb7060_5 fill in the blank 792dfff2bfb7060_6

Answer & Explanation Solved by verified expert

4.5 Ratings (631 Votes)

JOURNAL
Sl. No.	Date	Particulars	Dr. ($)	Cr. ($)
a.	Feb-22	Investments - Jupiter Co. Stock [34,000*25]	8,50,000
		Commission Charges	680
		To Cash		8,50,680

b.	Jun-01	Cash [34,000*1.70]	57,800
		To Dividend Revenue		57,800

c.	Nov-12	Cash [7,000*31-100]	2,16,900
		To Gain on Sale of Investments [216,900-175,000]		41,900
		To Investments - Jupiter Co. Stock [7,000*25]		1,75,000

d.	Dec-31	Valuation Allowance for Equity Investments [27,000*0.52]	14,040
		To Unrealized Gain on Equity Investments		14,040

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In: AccountingEntries for Equity Investments: Less than 20% OwnershipOn February 22, Triangle Corporation acquired 34,000 shares...Entries for Equity Investments: Less than 20% OwnershipOn February 22, Triangle Corporation acquired 34,000 shares ofthe 500,000 outstanding common stock of Jupiter Co. at $25 pluscommission charges of $680. On June 1, a cash dividend of $1.70 pershare was received. On November 12, 7,000 shares were sold at $31less commission charges of $100. At the end of the accountingperiod on December 31, the fair value of the remaining 27,000shares of Jupiter Company’s stock was $25.52 per share.In your computations, round per share amounts to twodecimal places. When required, round final answers to the nearestdollar.a. Using the cost method, journalize the entryfor the purchase of stock. If an amount box does not require anentry, leave it blank.Feb. 22Investments-Jupiter Co. Stockfill in the blank 1667110a206dfed_2fill in the blank 1667110a206dfed_3Cashfill in the blank 1667110a206dfed_5fill in the blank 1667110a206dfed_6Feedbacka. When recording the purchase of the investment, consider theamount of the brokerage commission.b. Using the cost method, journalize the entryfor the receipt of dividends. If an amount box does not require anentry, leave it blank.June 1Cashfill in the blank 6a7755068075014_2fill in the blank 6a7755068075014_3Dividend Revenuefill in the blank 6a7755068075014_5fill in the blank 6a7755068075014_6Feedbackb. Record the revenue earned.c. Using the cost method, journalize the entryfor the sale of 7,000 shares. If an amount box does not require anentry, leave it blank.Nov. 12Cashfill in the blank be3f49fb1079f8b_2fill in the blank be3f49fb1079f8b_3Gain on Sale of Investmentsfill in the blank be3f49fb1079f8b_5fill in the blank be3f49fb1079f8b_6Investments-Jupiter Co. Stockfill in the blank be3f49fb1079f8b_8fill in the blank be3f49fb1079f8b_9Feedbackc. When recording the cash received, consider the commission. Tocomplete the entry determine and gain or loss to be recorded.d. Using the cost method, journalize the entryfor the change in fair value. If an amount box does not require anentry, leave it blank.Dec. 31Valuation Allowance for Equity Investmentsfill in the blank 792dfff2bfb7060_2fill in the blank 792dfff2bfb7060_3Unrealized Gain on Equity Investmentsfill in the blank 792dfff2bfb7060_5fill in the blank 792dfff2bfb7060_6

Feb. 22	Investments-Jupiter Co. Stock	fill in the blank 1667110a206dfed_2	fill in the blank 1667110a206dfed_3
	Cash	fill in the blank 1667110a206dfed_5	fill in the blank 1667110a206dfed_6

June 1	Cash	fill in the blank 6a7755068075014_2	fill in the blank 6a7755068075014_3
	Dividend Revenue	fill in the blank 6a7755068075014_5	fill in the blank 6a7755068075014_6

Nov. 12	Cash	fill in the blank be3f49fb1079f8b_2	fill in the blank be3f49fb1079f8b_3
	Gain on Sale of Investments	fill in the blank be3f49fb1079f8b_5	fill in the blank be3f49fb1079f8b_6
	Investments-Jupiter Co. Stock	fill in the blank be3f49fb1079f8b_8	fill in the blank be3f49fb1079f8b_9

Dec. 31	Valuation Allowance for Equity Investments	fill in the blank 792dfff2bfb7060_2	fill in the blank 792dfff2bfb7060_3
	Unrealized Gain on Equity Investments	fill in the blank 792dfff2bfb7060_5	fill in the blank 792dfff2bfb7060_6