Sage Corporation purchased 400 shares of Sherman Inc. common stock for $12,900 (Sage does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share. Prepare Sage's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) enter an account title to record the purchase of the investment enter a debit amount enter a credit amount enter an account title to record the purchase of the investment enter a debit amount enter a credit amount (b) enter an account title to record the dividends received enter a debit amount enter a credit amount enter an account title to record the dividends received enter a debit amount enter a credit amount (c) enter an account title to record the fair value adjustment enter a debit amount enter a credit amount enter an account title to record the fair value adjustment enter a debit amount enter a credit amount
Sage Corporation purchased 400 shares of Sherman Inc. common stock for $12,900 (Sage does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share. Prepare Sage's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) enter an account title to record the purchase of the investment enter a debit amount enter a credit amount enter an account title to record the purchase of the investment enter a debit amount enter a credit amount (b) enter an account title to record the dividends received enter a debit amount enter a credit amount enter an account title to record the dividends received enter a debit amount enter a credit amount (c) enter an account title to record the fair value adjustment enter a debit amount enter a credit amount enter an account title to record the fair value adjustment enter a debit amount enter a credit amount
Chapter22: S Corporations
Section: Chapter Questions
Problem 23CE
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Question
Sage Corporation purchased 400 shares of Sherman Inc. common stock for $12,900 (Sage does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share.
Prepare Sage's
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No.
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Account Titles and Explanation
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Debit
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Credit
|
|---|---|---|---|
|
(a)
|
enter an account title to record the purchase of the investment
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the purchase of the investment
|
enter a debit amount
|
enter a credit amount
|
|
|
(b)
|
enter an account title to record the dividends received
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the dividends received
|
enter a debit amount
|
enter a credit amount
|
|
|
(c)
|
enter an account title to record the fair value adjustment
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the fair value adjustment
|
enter a debit amount
|
enter a credit amount
|
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