Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: 20Y2 Feb. 1. Purchased 7,500 shares of Caldwell Inc. common stock at $50 per shares plus a brokerage commission of $75. Caldwell has 100,000 share of common stock outstanding. July 1. Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission. 31. Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell Inc. stock. Nov. 15. Sold the remaining shares of Caldwell Inc. for $51 per share less a $90 brokerage commission. 20Y3 Dec. 31. The fair values of the Holland Inc. and Fuller Inc. securities are as follows: Issuing Company Cost Fair Value Holland Inc. $126,000 $132,500 INSTRUCTIONS Journalize the entries to record the preceding transactions, including any December 31 adjusting entries.
Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: 20Y2 Feb. 1. Purchased 7,500 shares of Caldwell Inc. common stock at $50 per shares plus a brokerage commission of $75. Caldwell has 100,000 share of common stock outstanding. July 1. Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission. 31. Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell Inc. stock. Nov. 15. Sold the remaining shares of Caldwell Inc. for $51 per share less a $90 brokerage commission. 20Y3 Dec. 31. The fair values of the Holland Inc. and Fuller Inc. securities are as follows: Issuing Company Cost Fair Value Holland Inc. $126,000 $132,500 INSTRUCTIONS Journalize the entries to record the preceding transactions, including any December 31 adjusting entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
M1)
Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31:
20Y2
Feb. 1. Purchased 7,500 shares of Caldwell Inc. common stock at $50 per shares plus a brokerage commission of $75. Caldwell has 100,000 share of common stock outstanding.
July 1. Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission.
31. Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell Inc. stock.
Nov. 15. Sold the remaining shares of Caldwell Inc. for $51 per share less a $90 brokerage commission.
20Y3
Dec. 31. The fair values of the Holland Inc. and Fuller Inc. securities are as follows:
Issuing Company Cost Fair Value
Holland Inc. $126,000 $132,500
INSTRUCTIONS
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