Question

Shamrock Inc. owns shares of Bridgeport Corporation stock. At December 31, 2017, the securities were carried in Shamrock’s accounting records at their cost of $789,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was $1,228,000, Shamrock declared a property dividend whereby the Bridgeport securities are to be distributed on October 23, 2018, to stockholders of record on October 8, 2018. Prepare all journal entries necessary on those three dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit

sep 21

oct 8

oct 23

Answer 1

Sep 21	Equity Investments	439000		=1228000-789000
	Unrealized holding gain/loss –income		439000
	Retained Earnings	1228000
	Property Dividends Payable		1228000
Oct 8	No entry	0
	No entry		0
Oct. 23	Property Dividends Payable	1228000
	Equity Investments		1228000