On January 5, 2017, JBC Company purchased the following stock investments:
300 shares Getz Corporation common stock for $4,800.
500 shares Keller Corporation common stock for $10,000.
600 shares R-tel Corporation common stock for $18,000.
Assume that JBC 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, JBC Company received the following cash dividends:
On November 15, 2017, JBC Company sold 100 shares of R-tel Corporation common stock for $3,600.
On December 31, 2017, the fair value of the securities held by JBC Company is as follows:
Instructions
Prepare the appropriate journal entries that the JBC Company should make on the following dates:
January 5, 2017
June 30, 2017
November 15, 2017
December 31, 2017

Question

On January 5, 2017, JBC Company purchased the following stock investments:
300 shares Getz Corporation common stock for $4,800.
500 shares Keller Corporation common stock for $10,000.
600 shares R-tel Corporation common stock for $18,000.
Assume that JBC 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, JBC Company received the following cash dividends:  
On November 15, 2017, JBC Company sold 100 shares of R-tel Corporation common stock for $3,600.
On December 31, 2017, the fair value of the securities held by JBC Company is as follows:  
Instructions
Prepare the appropriate journal entries that the JBC Company should make on the following dates:
January 5, 2017
June 30, 2017
November 15, 2017
December 31, 2017

Quizplus · Accepted Answer

The Answer of On January 5, 2017, JBC Company purchased the following stock investments:
300 shares Getz Corporation common stock for $4,800.
500 shares Keller Corporation common stock for $10,000.
600 shares R-tel Corporation common stock for $18,000.
Assume that JBC 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, JBC Company received the following cash dividends:  
On November 15, 2017, JBC Company sold 100 shares of R-tel Corporation common stock for $3,600.
On December 31, 2017, the fair value of the securities held by JBC Company is as follows:  
Instructions
Prepare the appropriate journal entries that the JBC Company should make on the following dates:
January 5, 2017
June 30, 2017
November 15, 2017
December 31, 2017

On January 5, 2017, JBC Company Purchased the Following Stock