On January 5 2017 Grouse Company purchased the following stock securities as a long-term investment: 300 shares Bonter Corporation common stock for $$4,500\$ 4,500$ .
500 shares Wane Corporation common stock for $$10,000\$ 10,000$ .
800 shares Strauss Corporation common stock for $$22,800\$ 22,800$ . Assume that Grouse 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 2017 Grouse Company received the following cash dividends: $share\begin{array}{llr} \text { Bonter Corporation. } &\$2.00\text { per share}\\ \text { Wane Corporation } &\$1.00\text { per share}\\ \text { Strauss Corporation } &\$1.50\text { per share}\end{array}$
On November 15 2017 Grouse Company sold 160 shares of Strauss Corporation common stock for $7200.
On December 31 2017 the fair value of the securities held by Grouse Company is as follows: $28\begin{array} { l c } &\underline{ \text { Per Share }} \\ \text { Bonter Corporation common stock } & \$ 10 \\\text { Wane Corporation common stock } & 16 \\\text { Strauss Corporation common stock } & 28\end{array}$ Instructions
Prepare the appropriate journal entries that Grouse Company should make on the following dates: January 5, 2017
June 30, 2017
November 15, 2017
December 31, 2017

Question

On January 5 2017 Grouse Company purchased the following stock securities as a long-term investment: 300 shares Bonter Corporation common stock for

$4,500\$ 4,500

.
500 shares Wane Corporation common stock for

$10,000\$ 10,000

.
800 shares Strauss Corporation common stock for

$22,800\$ 22,800

. Assume that Grouse 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 2017 Grouse Company received the following cash dividends:

share\begin{array}{llr} \text { Bonter Corporation. } &\$2.00\text { per share}\\ \text { Wane Corporation } &\$1.00\text { per share}\\ \text { Strauss Corporation } &\$1.50\text { per share}\end{array}

On November 15 2017 Grouse Company sold 160 shares of Strauss Corporation common stock for $7200.
On December 31 2017 the fair value of the securities held by Grouse Company is as follows:

28\begin{array} { l c } &\underline{ \text { Per Share }} \\ \text { Bonter Corporation common stock } & \$ 10 \\\text { Wane Corporation common stock } & 16 \\\text { Strauss Corporation common stock } & 28\end{array}

Instructions
Prepare the appropriate journal entries that Grouse Company should make on the following dates: January 5, 2017
June 30, 2017
November 15, 2017
December 31, 2017

Christine Young · Accepted Answer

Final Answer :

Definitions

Learning Objectives

Learning Objectives

Related questions