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GL1501 - Based on Problem 15-4A LO P4 Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.   Apr.   16   Purchased 5,000 shares of Lafayette Co. stock at $26 per share. July   7   Purchased 3,500 shares of CVF Co. stock at $51 per share.     20   Purchased 1,600 shares of Green Co. stock at $18 per share. Aug.   15   Received an $1.20 per share cash dividend on the Lafayette Co. stock.     28   Sold 3,000 shares of Lafayette Co. stock at $29 per share. Oct.   1   Received a $3.30 per share cash dividend on the CVF Co. shares. Dec.   15   Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares.     31   Received a $2.70 per share cash dividend on the CVF Co. shares.

GL1501 - Based on Problem 15-4A LO P4 Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.   Apr.   16   Purchased 5,000 shares of Lafayette Co. stock at $26 per share. July   7   Purchased 3,500 shares of CVF Co. stock at $51 per share.     20   Purchased 1,600 shares of Green Co. stock at $18 per share. Aug.   15   Received an $1.20 per share cash dividend on the Lafayette Co. stock.     28   Sold 3,000 shares of Lafayette Co. stock at $29 per share. Oct.   1   Received a $3.30 per share cash dividend on the CVF Co. shares. Dec.   15   Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares.     31   Received a $2.70 per share cash dividend on the CVF Co. shares.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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GL1501 - Based on Problem 15-4A LO P4

Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.
 
Apr.   16   Purchased 5,000 shares of Lafayette Co. stock at $26 per share.
July   7   Purchased 3,500 shares of CVF Co. stock at $51 per share.
    20   Purchased 1,600 shares of Green Co. stock at $18 per share.
Aug.   15   Received an $1.20 per share cash dividend on the Lafayette Co. stock.
    28   Sold 3,000 shares of Lafayette Co. stock at $29 per share.
Oct.   1   Received a $3.30 per share cash dividend on the CVF Co. shares.
Dec.   15   Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares.
    31   Received a $2.70 per share cash dividend on the CVF Co. shares.
General Journal General Transaction Requirement Trial Balance Fair Value Adj Fin St Impact Ledger Analysis The year-end fair values per share are: Lafayette Co., $27.00; CVF Co., $49.50; and Green Co., $15.00. Calculate the total cost and total fair value of the available-for-sale portfolio as of December 31, and calculate the amount of the required year-end adjusting entry, if any. Cost of investments at December 31: # of Shares Cost Lafayette Company stock CVF Co. stock $ 52,000 178,500 Green Co. 28,800 Total cost 2$ 259,300 Fair value of investments at December 31: # of Shares Fair value per share Fair Value Lafayette Company stock CVF Co. stock Green Co. Total fair value Total unrealized gain/loss as of December 31: Step 1: Determine what the unadjusted balance in the fair value adjustment equals: Determine what the adjusted balance in the fair value adjustment account should equal: Step 2:
Transcribed Image Text:General Journal General Transaction Requirement Trial Balance Fair Value Adj Fin St Impact Ledger Analysis The year-end fair values per share are: Lafayette Co., $27.00; CVF Co., $49.50; and Green Co., $15.00. Calculate the total cost and total fair value of the available-for-sale portfolio as of December 31, and calculate the amount of the required year-end adjusting entry, if any. Cost of investments at December 31: # of Shares Cost Lafayette Company stock CVF Co. stock $ 52,000 178,500 Green Co. 28,800 Total cost 2$ 259,300 Fair value of investments at December 31: # of Shares Fair value per share Fair Value Lafayette Company stock CVF Co. stock Green Co. Total fair value Total unrealized gain/loss as of December 31: Step 1: Determine what the unadjusted balance in the fair value adjustment equals: Determine what the adjusted balance in the fair value adjustment account should equal: Step 2:
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