On January 1,2014,Innocente Company purchases 1,000 shares of Intel common stock at $40 per share.Innocente intends to hold this investment for longer than one year.On June 1,2014,Intel declares and distributes a cash dividend of $0.50 per share.On December 31,2014,the market price of Intel's stock is $44 per share.On December 31,2015,the market price of Intel's stock is $56 per share.On December 31,2016,the market price of Intel's stock is $50 per share.Innocente Company uses a separate Allowance account to adjust the investment.
Prepare the journal entries on:
1.January 1,2014
2.June 1,2014
3.December 31,2014
4.December 31,2015
5.December 31,2016
Explanations are not required.
Correct Answer:
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