Blossom, Inc. had the following equity investment portfolio at January 1, 2020.

Evers Company		990 shares @ $14 each		$13,860
Rogers Company		890 shares @ $19 each		16,910
Chance Company		480 shares @ $10 each		4,800
Equity investments @ cost				35,570
Fair value adjustment				(7,590	)
Equity investments @ fair value				$27,980

During 2020, the following transactions took place.

1.		On March 1, Rogers Company paid a $2 per share dividend.
2.		On April 30, Blossom, Inc. sold 310 shares of Chance Company for $12 per share.
3.		On May 15, Blossom, Inc. purchased 110 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 $18, and Chance $9.

During 2021, the following transactions took place.

5.		On February 1, Blossom, 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 $20.

(a) Prepare journal entries for each of the above transactions.

(b) Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021.

Answer rating: 100% (QA)

Date 2017 1Mar Cash Dividend Revenue 890 shares 2 To record the dividend received 30Apr ... View the full answer