Problem 17-1o Marin, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company Rogers Company Chance Company 960 shares $15 each 860 shares $19 each 480 shares $8 each $14,400 16,340 3,840 34,580 (7,780 ) Equity investments cost Fair value adjustment Equity investments e fair value $26,800 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. On April 30, Marin, Inc. sold 300 shares of Chance Company for $12 per share. On May 15, Marin, Inc. purchased 110 more shares of Evers Company stock at $16 per share. 2. 3. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $7. During 2021, the following transactions took place. On February 1, Marin, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On Dec 5. 6. ember 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 $19 and Rogers $20. 7. 2 Your answer is partially correct. Try again. Prepare journal entries for each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (1)T Investment Income 1720 Dividend Revenue 1720 Cash 3600 Investment Income 2400 Gain on Sale of Investn 1200 (3) TDebt Investments 1760 Cash 1760 (4)E Equity Investments 2710 Revenue from Investm 2710 (5) Cash 1260 Loss on Sale of Investmen 180
Problem 17-1o Marin, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company Rogers Company Chance Company 960 shares $15 each 860 shares $19 each 480 shares $8 each $14,400 16,340 3,840 34,580 (7,780 ) Equity investments cost Fair value adjustment Equity investments e fair value $26,800 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. On April 30, Marin, Inc. sold 300 shares of Chance Company for $12 per share. On May 15, Marin, Inc. purchased 110 more shares of Evers Company stock at $16 per share. 2. 3. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $7. During 2021, the following transactions took place. On February 1, Marin, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On Dec 5. 6. ember 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 $19 and Rogers $20. 7. 2 Your answer is partially correct. Try again. Prepare journal entries for each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (1)T Investment Income 1720 Dividend Revenue 1720 Cash 3600 Investment Income 2400 Gain on Sale of Investn 1200 (3) TDebt Investments 1760 Cash 1760 (4)E Equity Investments 2710 Revenue from Investm 2710 (5) Cash 1260 Loss on Sale of Investmen 180
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 13EX
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