Manson Incorporated reported investments in equity securities of $60,495 as a current asset on its December 31, 2018, balance sheet. An analysis of Manson’s investments on December 31, 2018, reveals the following: Equity Security Cost Fair Value 400 shares of Turben Company, common $14,275 $13,590 500 shares of Cook Corp. common stock 12,650 13,175 700 shares of Hill Corp. common stock 17,450 18,180 200 shares of Web Engines, preferred stock 19,100 15,550 Totals $63,475 $60,495 During 2019, the following transactions related to Manson’s investments occurred: Transactions: Jan. 6 Received a $265 dividend on the Turben Company common stock. Mar. 31 Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments: Equity Security Fair Value Turben Company $13,470 Cook Corp. 13,765 Hill Corp. 18,940 Web Engines 15,500 June 30 Received a $375 dividend on the Cook Corp. common stock and a $700 dividend on the Hill Corp. common stock. The information is available concerning Manson’s investments: Equity Security Fair Value Turben Company $13,300 Cook Corp. 14,125 Hill Corp. 19,300 Web Engines 15,400 Transactions: July 6 Sold the Turben Company common stock for $13,750. Sept. 29 Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments: Equity Security Fair Value Cook Corp. $14,230 Hill Corp. 19,500 Web Engines 15,900 Transactions: Nov. 2 Sold the Hill Corp. common stock for $19,780. Dec. 30 Received a $375 dividend on the Cook Corp. common stock. The following information is available: Equity Security Fair Value Cook Corp. $14,280 Web Engines 16,400 Required: 1. Assuming Manson prepares quarterly financial statements, prepare journal entries to record the preceding information. 2. Show the items of income or loss from investment transactions that Manson reports for each quarter of 2019. 3. Show how Manson’s investments are reported on the balance sheet on March 31, 2019; June 30, 2019; September 30, 2019; and December 31, 2019.

Manson Incorporated reported investments in equity securities of $60,495 as a current asset on its December 31, 2018, balance sheet. An analysis of Manson’s investments on December 31, 2018, reveals the following: Equity Security Cost Fair Value 400 shares of Turben Company, common $14,275 $13,590 500 shares of Cook Corp. common stock 12,650 13,175 700 shares of Hill Corp. common stock 17,450 18,180 200 shares of Web Engines, preferred stock 19,100 15,550 Totals $63,475 $60,495 During 2019, the following transactions related to Manson’s investments occurred: Transactions: Jan. 6 Received a $265 dividend on the Turben Company common stock. Mar. 31 Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments: Equity Security Fair Value Turben Company $13,470 Cook Corp. 13,765 Hill Corp. 18,940 Web Engines 15,500 June 30 Received a $375 dividend on the Cook Corp. common stock and a $700 dividend on the Hill Corp. common stock. The information is available concerning Manson’s investments: Equity Security Fair Value Turben Company $13,300 Cook Corp. 14,125 Hill Corp. 19,300 Web Engines 15,400 Transactions: July 6 Sold the Turben Company common stock for $13,750. Sept. 29 Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments: Equity Security Fair Value Cook Corp. $14,230 Hill Corp. 19,500 Web Engines 15,900 Transactions: Nov. 2 Sold the Hill Corp. common stock for $19,780. Dec. 30 Received a $375 dividend on the Cook Corp. common stock. The following information is available: Equity Security Fair Value Cook Corp. $14,280 Web Engines 16,400 Required: 1. Assuming Manson prepares quarterly financial statements, prepare journal entries to record the preceding information. 2. Show the items of income or loss from investment transactions that Manson reports for each quarter of 2019. 3. Show how Manson’s investments are reported on the balance sheet on March 31, 2019; June 30, 2019; September 30, 2019; and December 31, 2019.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 13E

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Question

Equity Security	Cost	Fair Value
400 shares of Turben Company, common	$14,275	$13,590
500 shares of Cook Corp. common stock	12,650	13,175
700 shares of Hill Corp. common stock	17,450	18,180
200 shares of Web Engines, preferred stock	19,100	15,550
Totals	$63,475	$60,495

During 2019, the following transactions related to Manson’s investments occurred:

Transactions:
Jan.	6	Received a $265 dividend on the Turben Company common stock.
Mar.	31	Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments:

Equity Security	Fair Value
Turben Company	$13,470
Cook Corp.	13,765
Hill Corp.	18,940
Web Engines	15,500

June 30	Received a $375 dividend on the Cook Corp. common stock and a $700 dividend on the Hill Corp. common stock. The information is available concerning Manson’s investments:

Equity Security	Fair Value
Turben Company	$13,300
Cook Corp.	14,125
Hill Corp.	19,300
Web Engines	15,400

Transactions:
July	6	Sold the Turben Company common stock for $13,750.
Sept.	29	Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments:

Equity Security	Fair Value
Cook Corp.	$14,230
Hill Corp.	19,500
Web Engines	15,900

Transactions:
Nov.	2	Sold the Hill Corp. common stock for $19,780.
Dec.	30	Received a $375 dividend on the Cook Corp. common stock. The following information is available:

Equity Security	Fair Value
Cook Corp.	$14,280
Web Engines	16,400

Required:

1.	Assuming Manson prepares quarterly financial statements, prepare journal entries to record the preceding information.
2.	Show the items of income or loss from investment transactions that Manson reports for each quarter of 2019.
3.	Show how Manson’s investments are reported on the balance sheet on March 31, 2019; June 30, 2019; September 30, 2019; and December 31, 2019.

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