Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2 per share dividend. 7. On December 21, Evers Company declared a cash dividend of $ 3 per share to be paid in the next month. 8. At December 31, 2021, the stocks had the following price per share values: Evers $ 20 and Rogers $ 21. Prepare journal entries for each of the above transactions.
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2 per share dividend. 7. On December 21, Evers Company declared a cash dividend of $ 3 per share to be paid in the next month. 8. At December 31, 2021, the stocks had the following price per share values: Evers $ 20 and Rogers $ 21. Prepare journal entries for each of the above transactions.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 26P
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Question
Oriole, Inc. had the following equity investment portfolio at January 1, 2020.
Evers Company | 960 shares @ $ 14 each | $ 13,440 | |||
Rogers Company | 880 shares @ $ 20 each | 17,600 | |||
Chance Company | 520 shares @ $ 10 each | 5,200 | |||
Equity investments @ cost | 36,240 | ||||
Fair value adjustment | ( 7,300 | ) | |||
Equity investments @ fair value | $ 28,940 |
During 2020, the following transactions took place.
1. | On March 1, Rogers Company paid a $ 2 per share dividend. | |
2. | On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. | |
3. | On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. | |
4. | At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. |
During 2021, the following transactions took place.
5. | On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. | |
6. | On March 1, Rogers Company paid a $ 2 per share dividend. | |
7. | On December 21, Evers Company declared a cash dividend of $ 3 per share to be paid in the next month. | |
8. | At December 31, 2021, the stocks had the following price per share values: Evers $ 20 and Rogers $ 21. |
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