Johnson Inc.s nonstrategic investment portfolio at December consisted of the following:

Debt and Equity Investments Cost Fair Value

Xavier Corp. common shares $ $

Young Inc. common shares

Zed Corp. common shares

The fair value adjustments were recorded on December

Johnson had no other debt and equity investments at December other than those shown above. During Johnson engaged in the following transactions:

Jan. Sold common shares of Young Inc. for $ Johnson Inc. planned to hold these shares for less than one year.

Mar. Purchased common shares of Allen Corp. for $ The shares represent a ownership in Allen Corp.

June Received dividends from Allen Corp. at the rate of $ per share.

Aug. Sold the remaining Young Inc. shares at $

Nov. Purchased a ownership in Davis Corp. by acquiring common shares at a total of $ Johnson Inc. will sell these shares in six to nine months.

Dec. Sold shares of Xavier Corporation for $

Dec. Allen Corp. announced a net profit of $ for the year.

Required:

Journalize the above transactions.

Analysis Component:

Assume the Allen Corp. shares were sold on January for $ Calculate the investment income or loss and select whether it is unrealizedrealized

Answer rating: 100% (QA)

Journal Entries for 2020 Transactions Jan 17 2020 Cash 36000 Gain on sale of inventory3000 Investmen... View the full answer