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Thursday, August 12, 2010

Valix Finacc vol 1 Problem 10-4

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 10-4


July  15    Cash                                                                                       25,000
                    Dividend income (5,000 shares x 5)                                                       25,000

Dec. 15    Memo – Received 1,000 shares representing 20% 
                             stock dividend on 5,000 original shares held.

     28    Cash (3,000 shares x 60)                                                           180,000
                   Investment in equity securities                                                              133,000
                    Gain on sale of investment                                                                   47,000

                 Lot No. 1 (2,400 shares)                                                                           100,000
                 Lot No. 2 (600/3,600 x 198,000)                                                                  33,000
                 Cost of investment sold                                                                         133,000

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