On January 5, 2010, Reiley Company purchased the following stock securities as a long-term investment:
300 shares Holle Corporation common stock for $4,200.
500 shares Wood Corporation common stock for $10,000.
800 shares Kiley Corporation common stock for $22,800.
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, 2010, Reiley Company received the following cash dividends:
On November 15, 2010, Reiley Company sold 200 shares of Kiley Corporation common stock for $7,500.
On December 31, 2010, 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:
January 5, 2010
June 30, 2010
November 15, 2010
December 31, 2010

Question

On January 5, 2010, Reiley Company purchased the following stock securities as a long-term investment:
300 shares Holle Corporation common stock for $4,200.
500 shares Wood Corporation common stock for $10,000.
800 shares Kiley Corporation common stock for $22,800.
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, 2010, Reiley Company received the following cash dividends:  
On November 15, 2010, Reiley Company sold 200 shares of Kiley Corporation common stock for $7,500.
On December 31, 2010, 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:
January 5, 2010
June 30, 2010
November 15, 2010
December 31, 2010

Quizplus · Accepted Answer

The Answer of On January 5, 2010, Reiley Company purchased the following stock securities as a long-term investment:
300 shares Holle Corporation common stock for $4,200.
500 shares Wood Corporation common stock for $10,000.
800 shares Kiley Corporation common stock for $22,800.
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, 2010, Reiley Company received the following cash dividends:  
On November 15, 2010, Reiley Company sold 200 shares of Kiley Corporation common stock for $7,500.
On December 31, 2010, 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:
January 5, 2010
June 30, 2010
November 15, 2010
December 31, 2010

On January 5, 2010, Reiley Company Purchased the Following Stock