amarisk, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 950 shares @ $16 each $15,200 Rogers Company 910 shares @ $20 each 18,200 Chance Company 480 shares @ $8 each 3,840 Equity investments @ cost 37,240 Fair value adjustment (7,240 ) Equity investments @ fair value $30,000 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Tamarisk, Inc. sold 280 shares of Chance Company for $10 per share. 3. On May 15, Tamarisk, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $7. During 2021, the following transactions took place. 5. On February 1, Tamarisk, Inc. sold the remaining Chance shares for $7 per share. 6. On March 1, Rogers Company paid a $2 per share dividend. 7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. 8. At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $21. (a) Prepare journal entries for each of the above transactions. (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.) No. Account Titles and Explanation Debit Credit (1) (2) (3) (4) (5) (6) (7) (8)
amarisk, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 950 shares @ $16 each $15,200 Rogers Company 910 shares @ $20 each 18,200 Chance Company 480 shares @ $8 each 3,840 Equity investments @ cost 37,240 Fair value adjustment (7,240 ) Equity investments @ fair value $30,000 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Tamarisk, Inc. sold 280 shares of Chance Company for $10 per share. 3. On May 15, Tamarisk, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $7. During 2021, the following transactions took place. 5. On February 1, Tamarisk, Inc. sold the remaining Chance shares for $7 per share. 6. On March 1, Rogers Company paid a $2 per share dividend. 7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. 8. At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $21. (a) Prepare journal entries for each of the above transactions. (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.) No. Account Titles and Explanation Debit Credit (1) (2) (3) (4) (5) (6) (7) (8)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
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Tamarisk, Inc. had the following equity investment portfolio at January 1, 2020.
During 2020, the following transactions took place.
During 2021, the following transactions took place.
Evers Company | 950 shares @ $16 each | $15,200 | |||
Rogers Company | 910 shares @ $20 each | 18,200 | |||
Chance Company | 480 shares @ $8 each | 3,840 | |||
Equity investments @ cost | 37,240 | ||||
Fair value adjustment | (7,240 | ) | |||
Equity investments @ fair value | $30,000 |
During 2020, the following transactions took place.
1. | On March 1, Rogers Company paid a $2 per share dividend. | |
2. | On April 30, Tamarisk, Inc. sold 280 shares of Chance Company for $10 per share. | |
3. | On May 15, Tamarisk, Inc. purchased 90 more shares of Evers Company stock at $17 per share. | |
4. | At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $7. |
During 2021, the following transactions took place.
5. | On February 1, Tamarisk, Inc. sold the remaining Chance shares for $7 per share. | |
6. | On March 1, Rogers Company paid a $2 per share dividend. | |
7. | On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. | |
8. | At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $21. |
(a)
Prepare journal entries for each of the above transactions. (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.)
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