On December 31, 2016, Eli Associates owned the following long-term investments.

Ordinary Shares Shares Cost

Trowbridge Co....................4,000...............€96,000

Holly Co...........................5,000.................30,000

Oriental Motors Co...............3,000.................60,000

On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the associates. In 2017, the following transactions occurred.

Aug. 1 Received €0.50 per share cash dividend on Trowbridge Co. ordinary shares.

Sept. 1 Sold 1,500 ordinary shares of Holly Co. for cash at €8.50 per share.

Oct. 1 Sold 600 ordinary shares of Trowbridge Co. for cash at €30 per share.

Nov. 1 Received €1 per share cash dividend on Oriental Motor Co. ordinary shares.

Dec. 15 Received €0.60 per share cash dividend on Trowbridge Co. ordinary shares.

31 Received €1 per share annual cash dividend on Holly Co. ordinary shares.

At December 31, the fair values per share of the ordinary shares were Trowbridge Co. €23, Holly Co. €7, and Oriental Motors Co. €19.

Instructions

(a) Journalize the 2017 transactions and post to the account Share Investments. (Use the T-account form.)

(b) Prepare the adjusting entry at December 31, 2017, to show the securities at fair value. The shares should be classified as non-trading securities.

(c) Show the statement of financial position presentation of the investment-related accounts at December 31, 2017. At this date, Eli Associates has share capital- ordinary €2,000,000 and retained earnings €1,200,000.