During December of the current year, James Company acquired some of the 49,800 outstanding shares of the common stock, par $16, of Andrew Corporation as available-for-sale investments. The accounting period for both companies ends December 31.
Dec 2 Purchased 6,390 shares of Andrew common stock at $30 per share.
Dec 15 Andrew Corporation declared and paid a cash dividend of $4 per share.
Dec 31 Determined the current market price of Andrew stock to be $26 per share.
Prepare the journal entries for each of the following transactions that occurred during the current year
Darshita Changed status to publish July 26, 2020
| Date | Description | Debit $ | Credit $ |
| Dec,-o2 | Investemtn in AFS secturity | 191700 | |
| Cash | 191700 | ||
| (6,390 shares × $30 = $191,700 ) | |||
| Dec,-15 | Cash | 25560 | |
| Devidend Revenue | 25560 | ||
| (6,390 shares × $4 = $25,560) | |||
| Dec,-31 | Net realised Loss | 25560 | |
| Investment in AFS security | 25560 | ||
| ((6,390 × $26)-$191,700) =− $25,560 | |||
| ($166,140-191,700=− $25,560 |
Darshita Changed status to publish July 26, 2020
