HOMEWORK (Equity Investments) Messi Holdings, Inc. had the following investment portfolio at January 1, 2021. Ronaldo Company Paul Company Ozil Company Trading investment @ cost Securities fair value adjustment 1,250 shares @ $23 cach 700 shares @ $27 cach 850 shares @ $24 cach $28,750 18,900 20.400 68,050 11.400) 56,650 Trading investment @ fair value During 2021, the following transactions took place. 1. On March 1, Paul Company paid a $2.3 per share dividend. 2. On March 31, Messi Holdings, Inc. sold 400 shares of Ozil Company for $22 per share. 3. On July 15, Messi Holdings, Inc. purchased 300 more shares of Ronaldo Co. at $24 per share. 4. At December 31, 2021, the shares had the following price per share values: Ronaldo $28, Paul $25, and Ozil $26. During 2022, the following transactions took place. 5. On February 1, Messi Inc. sold the remaining Ozil shares for $14 per share. 6. On June 1, Paul Company paid a $3.5 per share dividend. 7. On December 11, Ronaldo Company declared a cash dividend of $4.2 per share to be paid in the next month. 8. At December 31, 2021, the shares had the following price per shares values: Ronaldo $26 and Paul $34. Instructions: (a) Prepare journal entries for each of the above transactions. (b) Prepare a partial statement of financial position showing the Investments account at December 31, 2021 and 2022.
HOMEWORK (Equity Investments) Messi Holdings, Inc. had the following investment portfolio at January 1, 2021. Ronaldo Company Paul Company Ozil Company Trading investment @ cost Securities fair value adjustment 1,250 shares @ $23 cach 700 shares @ $27 cach 850 shares @ $24 cach $28,750 18,900 20.400 68,050 11.400) 56,650 Trading investment @ fair value During 2021, the following transactions took place. 1. On March 1, Paul Company paid a $2.3 per share dividend. 2. On March 31, Messi Holdings, Inc. sold 400 shares of Ozil Company for $22 per share. 3. On July 15, Messi Holdings, Inc. purchased 300 more shares of Ronaldo Co. at $24 per share. 4. At December 31, 2021, the shares had the following price per share values: Ronaldo $28, Paul $25, and Ozil $26. During 2022, the following transactions took place. 5. On February 1, Messi Inc. sold the remaining Ozil shares for $14 per share. 6. On June 1, Paul Company paid a $3.5 per share dividend. 7. On December 11, Ronaldo Company declared a cash dividend of $4.2 per share to be paid in the next month. 8. At December 31, 2021, the shares had the following price per shares values: Ronaldo $26 and Paul $34. Instructions: (a) Prepare journal entries for each of the above transactions. (b) Prepare a partial statement of financial position showing the Investments account at December 31, 2021 and 2022.
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 80E: Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented...
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Transcribed Image Text:HOMEWORK (Equity Investments)
Messi Holdings, Inc. had the following investment portfolio at January 1, 2021.
Ronaldo Company
Paul Company
Ozil Company
Trading investment @ cost
Securities fair value adjustment
1,250 shares @ $23 cach
700 shares @ $27 cach
850 shares @ $24 each
$28,750
18,900
20.400
68,050
(11.400)
Trading investment @ fair value
56.650
During 2021, the following transactions took place.
1. On March 1, Paul Company paid a $2.3 per share dividend.
2. On March 31, Messi Holdings, Inc. sold 400 shares of Ozil Company for $22 per share.
3. On July 15, Messi Holdings, Inc. purchasced 300 more shares of Ronaldo Co. at $24 per
share.
4. At December 31, 2021, the shares had the following price per share values: Ronaldo
$28, Paul $25, and Ozil $26.
During 2022, the following transactions took place.
5. On February 1, Messi Inc. sold the remaining Ozil shares for $14 per share.
6. On June 1, Paul Company paid a $3.5 per share dividend.
7. On December 11, Ronaldo Company declared a cash dividend of S4.2 per share to be
paid in the next month.
8. At December 31, 2021, the shares had the following price per shares values: Ronaldo
$26 and Paul $34.
Instructions:
(a) Prepare journal entries for each of the above transactions.
(b) Prepare a partial statement of financial position showing the Investments account at
December 31, 2021 and 2022.
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