Solution-Prepare journal entry to record the dividend

Prepare journal entry to record the dividend

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Reference no: EM133135072

Question - November 5, 2015, Democrat Corporation purchased ordinary shares of three companies, each investment representing less than a 20 percent interest. These shares are held-for-trading.

	Cost Nov 5, 2015	Fair Value Dec 31, 2015
Britney Corporation	141,400	104,000
Player Inc	259,700	275,000
Zurich Corporation	317,500	304,000
Total	718,600	683,000

Required -

1. Prepare Journal entry at the date of the ordinary shares purchase on November 5, 2015.

2. On December 7, 2015, Democrat receives a cash dividend of €4,500 on its investment in the ordinary shares of Zurich. Prepare journal entry to record the dividend.

3. Prepare the adjusting journal entry needed on December 31, 2015.

4. On January 23, 2016, Democrat sold all of its Player ordinary shares, receiving €287,250, prepare journal entry to record this transaction.

Reference no: EM133135072

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Prepare journal entry to record the dividend

Reference no: EM133135072

Reference no: EM133135072

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