Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2017 and December 31, 2018 (see attached picture) P17-10 (LO2) EXCEL (Equity Investments) Castleman Holdings, Inc. had the following equity investment portfolio atJanuary 1, 2017.Evers CompanyRogers CompanyChance Company1,000 shares @ $15 each$15,00018,000900 shares @ $20 each500 shares @ $9 each4,500Equity investments @ costFair value adjustment37,500(7,500)Equity investments @ fair value$30,000During 2017, the following transactions took place.1. On March 1, Rogers Company paid a $2 per share dividend.2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for $11 per share.3. On May 15, Castleman Holdings, Inc. purchased 100 more shares of Evers Company stock at $16 per share.4. At December 31, 2017, the stocks had the following price per share values: Evers $17, Rogers $19, and Chance S8.During 2018, the following transactions took place.5. On February 1, Castleman Holdings, Inc. sold the remaining Chance shares for $8 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, 2018, the stocks had the following price per share values: Evers $19 and Rogers $21.

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Answered: P17-10 (LO2) EXCEL (Equity Investments)…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 11QE

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Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2017 and December 31, 2018 (see attached picture)

P17-10 (LO2) EXCEL (Equity Investments) Castleman Holdings, Inc. had the following equity investment portfolio at
January 1, 2017.
Evers Company
Rogers Company
Chance Company
1,000 shares @ $15 each
$15,000
18,000
900 shares @ $20 each
500 shares @ $9 each
4,500
Equity investments @ cost
Fair value adjustment
37,500
(7,500)
Equity investments @ fair value
$30,000
During 2017, the following transactions took place.
1. On March 1, Rogers Company paid a $2 per share dividend.
2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for $11 per share.
3. On May 15, Castleman Holdings, Inc. purchased 100 more shares of Evers Company stock at $16 per share.
4. At December 31, 2017, the stocks had the following price per share values: Evers $17, Rogers $19, and Chance S8.
During 2018, the following transactions took place.
5. On February 1, Castleman Holdings, Inc. sold the remaining Chance shares for $8 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, 2018, the stocks had the following price per share values: Evers $19 and Rogers $21.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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