Chapter 9
Investments
442
AP-6A (
1
2
)
Midland Company’s investment activities from 2016 to 2017 are recorded below. Its year-end
is on December 31.
1) On January 21, 2016, Midland Company purchased 200 common shares of Yahoo Holding
from Toronto Stock Exchange at $18.92 per share. The equity instrument is purchased for
the purpose of trading.
2) On June 30, 2016, Midland Company received dividends fromYahoo Holding of $1.50 per
share.
3) On December 31, 2016, the trading price of Yahoo Holding went up to $19.00 per share.
4) On January 28, 2017, Midland Company sold all 200 Yahoo Holding shares at $19.23 per
share.
Record journal entries of the provided investment activities for Midland Company.
Date
Account Title and Explanation
Debit
Credit
