Debt investment transactions, available-for-sale valuationRios Co. is a regional insurance company that began operations on January 1, 2021. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31:2021Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding.May 1 Purchased securities of Holland, Inc. as a trading investment for $126,000.July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110 brokerage commission.July 31 Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell, Inc. stock.Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a $90 brokerage commission.Dec. 31 The trading securities of Holland, Inc. have a fair value on December 31 for $120,000. 2022 Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for $125,000.Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000.Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows: Issuing Company Cost Fair Value Holland, Inc. $126,000 $132,500 Fuller, Inc. 100,000 115,600Instructions1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entri Problem 15-1AQuestion 12021Feb.MayJuly31Nov. 15Dec. 312022Apr.1Oct. 14Dec. 31WrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongWrongZIP PAEPER PR 15-1A Debt investment transactions, available-for-sale valuationRios Co. is a regional insurance company that began operations on January 1,2021. The following selected transactions relate to investments acquired by RiosCo., which has a fiscal year ending on December 31:2021Feb. 1May 1July 1July 31Nov. 15Dec. 312022Apr. 1Oct. 14Dec. 31Purchased 7,500 shares of Caldwell, Inc. common stock at $50 pershare plus a brokerage commission of $75. Caldwell has 100,000shares of common stock outstanding.Purchased securities of Holland, Inc. as a trading investment for$126,000.Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110brokerage commission.Received an annual dividend of $0.50 per share on 3,000 shares ofCaldwell, Inc. stock.Sold the remaining shares of Caldwell, Inc. for $51 per share less a$90 brokerage commission.The trading securities of Holland, Inc. have a fair value on December31 for $120,000.Purchased securities of Fuller, Inc. as a trading investment for$125,000.Sold securities of Fuller, Inc. that cost $25,000 for $30,000.The fair values of the Holland, Inc. and Fuller, Inc. securities are asfollows:Issuing CompanyHolland, Inc.Fuller, Inc.CostFair Value$126,000 $132,500100,000 115,600Instructions1. Journalize the entries to record the preceding transactions, including anyDecember 31 adjusting entries.Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage.

Journal Entry is a part of accounting process which helps a company to maintain the record of…

Debt investment transactions, available-for-sale valuation Rios Co. is a regional insurance company that began operations on January 1, 2021. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: 2021 Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding. May 1 Purchased securities of Holland, Inc. as a trading investment for $126,000. July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110 brokerage commission. July 31 Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell, Inc. stock. Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a $90 brokerage commission. Dec. 31 The trading securities of Holland, Inc. have a fair value on December 31 for $120,000. 2022 Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for $125,000. Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000. Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows: Issuing Company Cost Fair Value Holland, Inc. $126,000 $132,500 Fuller, Inc. 100,000 115,600 Instructions 1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entri

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15.21EX

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Question

Debt investment transactions, available-for-sale valuation
Rios Co. is a regional insurance company that began operations on January 1,
2021. The following selected transactions relate to investments acquired by Rios
Co., which has a fiscal year ending on December 31:
2021
Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per
share plus a brokerage commission of $75. Caldwell has 100,000
shares of common stock outstanding.
May 1 Purchased securities of Holland, Inc. as a trading investment for
$126,000.
July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110
brokerage commission.
July 31 Received an annual dividend of $0.50 per share on 3,000 shares of
Caldwell, Inc. stock.
Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a
$90 brokerage commission.
Dec. 31 The trading securities of Holland, Inc. have a fair value on December
31 for $120,000. 2022

Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for
$125,000.

Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000.
Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows: Issuing Company Cost Fair Value Holland, Inc. $126,000 $132,500 Fuller, Inc. 100,000 115,600
Instructions

1. Journalize the entries to record the preceding transactions, including any
December 31 adjusting entri

Problem 15-1A
Question 1
2021
Feb.
May
July
31
Nov. 15
Dec. 31
2022
Apr.
1
Oct. 14
Dec. 31
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
ZIP PAEPER

PR 15-1A Debt investment transactions, available-for-sale valuation
Rios Co. is a regional insurance company that began operations on January 1,
2021. The following selected transactions relate to investments acquired by Rios
Co., which has a fiscal year ending on December 31:
2021
Feb. 1
May 1
July 1
July 31
Nov. 15
Dec. 31
2022
Apr. 1
Oct. 14
Dec. 31
Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per
share plus a brokerage commission of $75. Caldwell has 100,000
shares of common stock outstanding.
Purchased securities of Holland, Inc. as a trading investment for
$126,000.
Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110
brokerage commission.
Received an annual dividend of $0.50 per share on 3,000 shares of
Caldwell, Inc. stock.
Sold the remaining shares of Caldwell, Inc. for $51 per share less a
$90 brokerage commission.
The trading securities of Holland, Inc. have a fair value on December
31 for $120,000.
Purchased securities of Fuller, Inc. as a trading investment for
$125,000.
Sold securities of Fuller, Inc. that cost $25,000 for $30,000.
The fair values of the Holland, Inc. and Fuller, Inc. securities are as
follows:
Issuing Company
Holland, Inc.
Fuller, Inc.
Cost
Fair Value
$126,000 $132,500
100,000 115,600
Instructions
1. Journalize the entries to record the preceding transactions, including any
December 31 adjusting entries.
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage.

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