Question

Brief Exercise 15-11

Cheyenne Inc. owns shares of Ayayai Corporation stock. At December 31, 2017, the securities were carried in Cheyenne’s accounting records at their cost of $979,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was $1,092,000, Cheyenne declared a property dividend whereby the Ayayai 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. 21Oct. 8Oct. 23
	(To record gain or loss)
	(To record property dividend)
Sep. 21Oct. 8Oct. 23
Sep. 21Oct. 8Oct. 23

Answer 1

Answer
Journal Entries
Date	Accounts Titles	Debit	Credit
		$	$
Sep.21,2018	Equity Investments ($1092000-$979000)	$   113,000
	Unrealized Holding Gain or Loss-income		$        113,000
	(To Record gain)
	Retained Earnings	$1,092,000
	Property Dividends payable		$     1,092,000
	(To Record property dividend record)
Oct.8,2018	No Entry	$             -
	No Entry		$                  -
Oct.23,2018	Property Dividends payable	$1,092,000
	Equity Investments		$     1,092,000
	(To Record entry )
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