Brief Exercise 1511 Vaughn Inc owns shares of Bramble Corpor

Brief Exercise 15-11

Vaughn Inc. owns shares of Bramble Corporation stock. At December 31, 2017, the securities were carried in Vaughn’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 $993,000, Vaughn declared a property dividend whereby the Bramble 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

(To record gain or loss)

(To record property dividend)

Open Show Work

Date	Account Titles and Explanation	Debit	Credit
Sep. 21Oct. 8Oct. 23
	(To record gain or loss)
	(To record property dividend)
Sep. 21Oct. 8Oct. 23
Sep. 21Oct. 8Oct. 23

Solution

Date Journal Entry Debit (in $) Credit(in $) 21-Sep Equity Investments (993000 -789000) 204000 To Unrealised holding gain/loss 204000 (To record gain/loss) 21-Sep Retained Earnings 993000 To Property dividend Payable 993000 (To record property dividend) 8-Oct There will be no entry here 23-Oct Property dividend Payable 993000 To Equity Investments 993000 (To record property dividend paid)