Question

8. On

MayMay

​15,

20182018​,

StaceyStacey

Co. invests

$ 12 comma 000$12,000

in

MaxMax​,

Inc. stock.

MaxMax

pays

StaceyStacey

a

$ 900$900

dividend on

NovemberNovember

​15,

20182018.

StaceyStacey

sells the

MaxMax

stock on

DecemberDecember

​10,

20182018​,

for

$ 11 comma 800$11,800.

Assume the

StaceyStacey

Co. does not have significant influence over

MaxMax​,

Inc. Journalize the

20182018

transactions related to

StaceyStacey​'s

investment in

MaxMax

stock. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)Begin by journalizing

StaceyStacey​'s

initial investment in

MaxMax​,

​Inc., stock on

MayMay

​15,

20182018.

Date			Accounts and Explanation	Debit	Credit
2018
May 15

​Next, journalize

StaceyStacey​'s

receipt of the

NovemberNovember

​15,

20182018

dividend.

Date			Accounts and Explanation	Debit	Credit
2018
Nov. 15

Now journalize

StaceyStacey​'s

sale of the

MaxMax​,

​Inc., stock on

DecemberDecember

​10,

20182018.

Date			Accounts and Explanation	Debit	Credit
2018
Dec. 10

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Date	Account title	Debit	credit
May 15	Investment in Max Inc	12000
	Cash		12000
Nov 15	cash	900
	Dividend revenue		900
Dec 10	cash	11800
	Loss on sale of investment	200
	Investment in Max Inc		12000