On January 5, 2014, Reiley Company purchased the following share securities as a long-term investment:
300 ordinary shares Holle Corporation for $4,200.
500 ordinary shares Wood Corporation for $10,000.
600 ordinary shares Kiley Corporation for $19,800.
Assume that Reiley 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, 2014, Reiley Company received the following cash dividends: On November 15, 2014, Reiley Company sold 200 shares of Kiley Corporation for $7,500.
On December 31, 2014, the fair value of the securities held by Reiley Company is as follows: Instructions
Prepare the appropriate journal entries that Reiley Company should make on the following dates:

Question

On January 5, 2014, Reiley Company purchased the following share securities as a long-term investment:
300 ordinary shares Holle Corporation for $4,200.
500 ordinary shares Wood Corporation for $10,000.
600 ordinary shares Kiley Corporation for $19,800.
Assume that Reiley 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, 2014, Reiley Company received the following cash dividends:  On November 15, 2014, Reiley Company sold 200 shares of Kiley Corporation for $7,500.
On December 31, 2014, the fair value of the securities held by Reiley Company is as follows:  Instructions
Prepare the appropriate journal entries that Reiley Company should make on the following dates:

Quizplus · Accepted Answer

The Answer of On January 5, 2014, Reiley Company purchased the following share securities as a long-term investment:
300 ordinary shares Holle Corporation for $4,200.
500 ordinary shares Wood Corporation for $10,000.
600 ordinary shares Kiley Corporation for $19,800.
Assume that Reiley 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, 2014, Reiley Company received the following cash dividends:  On November 15, 2014, Reiley Company sold 200 shares of Kiley Corporation for $7,500.
On December 31, 2014, the fair value of the securities held by Reiley Company is as follows:  Instructions
Prepare the appropriate journal entries that Reiley Company should make on the following dates:

On January 5, 2014, Reiley Company Purchased the Following Share