ialize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. for share inmestments. Ordinary Shares Shares Cost Carlene Co. 2.000 £60,000 Riverdale Co. 5,000 45,000 Raczynski Co. 1.500 30,000 On December 31, 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing transactions occurred. Aug. I Received £0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. I Oct. Sold 2,000 ordinary shares of Riverdale Co. for cash at E8 per share. Sold 800 ordinary shares of Carlene Co. for cash at £33 per share. Problems 16 Nov. 1 Dec. 15 Received £l per share cash dividend on Raczynski Co. ordinary shares. Received £0.70 per share cash dividend on Carlene Co. ordinary shares. 31 Received £1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. £32. Riverdale Co. E8, and Raczynski Co. £18. Instructions a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account form.) b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares should be classified as non-trading securities. b. Unrealized loss £3,600 c. Show the statement of financial position presentation of the investments at December 31, 2020. At this date. Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings £1,000,000.
ialize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. for share inmestments. Ordinary Shares Shares Cost Carlene Co. 2.000 £60,000 Riverdale Co. 5,000 45,000 Raczynski Co. 1.500 30,000 On December 31, 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing transactions occurred. Aug. I Received £0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. I Oct. Sold 2,000 ordinary shares of Riverdale Co. for cash at E8 per share. Sold 800 ordinary shares of Carlene Co. for cash at £33 per share. Problems 16 Nov. 1 Dec. 15 Received £l per share cash dividend on Raczynski Co. ordinary shares. Received £0.70 per share cash dividend on Carlene Co. ordinary shares. 31 Received £1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. £32. Riverdale Co. E8, and Raczynski Co. £18. Instructions a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account form.) b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares should be classified as non-trading securities. b. Unrealized loss £3,600 c. Show the statement of financial position presentation of the investments at December 31, 2020. At this date. Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings £1,000,000.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
Related questions
Question
Transcribed Image Text:urnalize transactions and adjusting
P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a
long-term investment. The securities are not held for influence or control of the investee.
ury for shaare investments.
Ordinary Shares
Shares
Cost
Carlene Co.
2,000
£60,000
Riverdale Co.
5,000
45,000
Raczynski Co.
1.500
30,000
On December 31. 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing
transactions occurred.
Aug. I
Sept. I
Oct.
Received £0.70 per share cash dividend on Carlene Co, ordinary shares.
Sold 2,000 ordinary shares of Riverdale Co. for cash at €8 per share.
Sold 800 ordinary shares of Carlene Co. for cash at £33 per share.
Problems 16-35
Nov. 1
Received £1 per share cash dividend on Raczynski Co. ordinary shares.
Received £0.70 per share cash dividend on Carlene Co. ordinary shares.
31
Dec. 15
Received £1 per share annual cash dividend on Riverdale Co. ordinary shares.
At December 31, the fair values per share of the ordinary shares were Carlene Co. £32, Riverdale Co.
£8, and Raczynski Co. £18.
Instructions
a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account
form.)
b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares
should be classified as non-trading securities.
b. Unrealized loss £3,600
c. Show the statement of financial position presentation of the investments at December 31, 2020.
At this date, Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings
£1,000,000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning