On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities
Question:
On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.
On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the following transactions occurred.July 1 Received $1 per share semiannual cash dividend on Riverdale Co. common stock.Aug. 1 Received $0.50 per share cash dividend on Carlene Co. common stock.Sept.1 Sold 1,500 shares of Riverdale Co. common stock for cash at $8 per share, less brokerage fees of $300.Oct. 1 Sold 800 shares of Carlene Co. common stock for cash at $33 per share, less brokerage fees of $500.Nov. 1 Received $1 per share cash dividend on Raczynski Co. common stock.Dec.15 Received $0.50 per share cash dividend on Carlene Co. common stock. 31 Received $1 per share semiannual cash dividend on Riverdale Co. common stock.At December 31, the fair values per share of the common stocks were: Carlene Co. $32, Riverdale Co. $8, and Raczynski Co. $18.Instructions(a) Journalize the 2013 transactions and post to the account Stock Investments. (Use the T-account form.)(b) Prepare the adjusting entry at December 31, 2013, to show the securities at fair value. The stock should be classified as available-for-sale securities.(c) Show the balance sheet presentation of the investments at December 31, 2013. At this date,Ogallala Associates has common stock $1,500,000 and retained earnings$1,000,000.
StocksStocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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a 2013 July 1 Cash 5000 X 1 5000 Dividend Revenue 5000 Aug 1 Cash 2000 X 50 1000 Dividend Revenue 10...View the full answer
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
