Business, 19.04.2021 16:00 sansketon

A. On July 1, 2018, the Churab Company paid $200,000 in return for a 5% interest (20,000 shares) in the UNCY Corporation’s common stock. b. On December 21, 2018, UNCY paid all its stockholders a cash dividend of $1.00 a share.
c. On December 31, 2018, UNCY’s common stock had a market value of $15 a share.
d. On November 30, 2019, UNCY issued 100,000 shares of preferred stock that would be convertible, at the option of its stockholders, into 60,000 shares of common stock no earlier than 2022.
d. On December 31, 2019, UNCY’s common stock had a market value of $12 a share.
e. On February 1, 2020, Churab sold all its shares of its UNCY stock for $19 a share.

Required:
Provide all the journal entries that the Churab Company would make for the investment activity described above.

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Answer from: jennkoga

Churab Company

Journal Entries

a. On July 1, 2018

Debit Investment in UNCY Corporation $200,000

Credit Cash $200,000

To record the purchase of 5% interest (20,000 shares) in the UNCY Corporation’s common stock.

b. On December 21, 2018

Debit Cash $20,000

Credit Dividend Revenue $20,000

To record the receipt of dividend from UNCY Corporation at $1.00 a share.

c. On December 31, 2018

Debit Investment in UNCY Corporation $100,000

Credit Unrealized Gain from Investment $100,000

To record the unrealized gain from investment when the market value rose to $15 a share.

d. On December 31, 2019

Debit Unrealized Loss from Investment $60,000

Credit Investment in UNCY $60,000

To record the unrealized loss from investment when the market value fell to $12 a share.

e. On February 1, 2020

Debit Cash $380,000

Credit Investment in UNCY Corporation $240,000

Credit Realized Gain from Investment $140,000

To record the sale of the shares of UNCY stock for $19 per share.

Explanation:

a) Data and Analysis:

a. On July 1, 2018 Investment in UNCY Corporation $200,000 Cash $200,000 5% interest (20,000 shares) in the UNCY Corporation’s common stock.

b. On December 21, 2018, Cash $20,000 Dividend Revenue $20,000 $1.00 a share.

c. On December 31, 2018, Investment in UNCY Corporation $100,000 Unrealized Gain from Investment $100,000 (a market value of $15 a share).

d. On November 30, 2019, UNCY issued 100,000 shares of preferred stock that would be convertible, at the option of its stockholders, into 60,000 shares of common stock no earlier than 2022.

d. On December 31, 2019, Unrealized Loss from Investment $60,000 Investment in UNCY $60,000 a market value of $12 a share.

e. On February 1, 2020, Cash $380,000 Investment in UNCY Corporation $240,000 Realized Gain from Investment $140,000

Answer from: Quest

probably not? : o

unless you work at a circus or any other job like that. c:

maybe..

Answer from: Quest

Destablishing a distribution network

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