Rouse company purchased the following stock securities as a

Reference no: EM13483602

Rouse Company purchased the following stock securities as a long-term investment: 300 shares Haggle Corporation common stock for $4,200. 500 shares Wax Corporation common stock for $10,000. 800 shares Karl Corporation common stock for $22,800. Assume that Rouse Company cannot exercise significant influence over the activities of the investee companies and that the cost method is used to account for the investments. On June 30, 2012, Rouse Company received the following cash dividends: Haggle Corporation $2.00 per share Wax Corporation $1.00 per share Karl Corporation $1.50 per share On November 15, 2012, Rouse Company sold 200 shares of Karl Corporation common stock for $7,500.

On December 31, 2012, the fair value of the securities held by Rouse Company is as follows: Per Share Haggle Corporation common stock $10 Wax Corporation common stock 16 Karl Corporation common stock 28 Instructions Prepare the appropriate journal entries that Rouse Company should make on the following dates: January 5, 2012 June 30, 2012 November 15, 2012 December 31, 2012

Reference no: EM13483602

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