Prepare the journal entries Acorn Corp should record

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Question - Acorn, Corp. had the following long-term investment transaction.

Jan. 2 Purchased 5,000 shares of Seed, Inc. for $40 per share plus $6,195 in fees and commission. These shares represent a 30% ownership of Seed.

Sept. 20 Seed, Inc. declared a $1.50 per share cash dividend to shareholders of record on October 1, payable October 15.

Oct. 15 Received Seed, Inc. cash dividend.

Dec. 31 Seed, Inc. reported a net loss of $66,000 for the year.

Required - Prepare the journal entries Acorn Corp. should record for these transactions.

Reference no: EM133030615

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