(a) Prepare journal entries for each of the above transactions. (b) Prepare a partial balance sheet showing...
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(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.
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Whispering, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 1,040 shares @ $14 each $14,560 Rogers Company 900 shares @ $19 each 17,100 Chance Company 470 shares @ $9 each 4,230 Equity investments @ cost 35,890 Fair value adjustment (7,180 ) Equity investments @ fair value $28,710 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Whispering, Inc. sold 310 shares of Chance Company for $10 per share. 3. On May 15, Whispering, Inc. purchased 90 more shares of Evers Company stock at $16 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Whispering, Inc. sold the remaining Chance shares for $8 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 $19 and Rogers $20. Whispering, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 1,040 shares @ $14 each $14,560 Rogers Company 900 shares @ $19 each 17,100 Chance Company 470 shares @ $9 each 4,230 Equity investments @ cost 35,890 Fair value adjustment (7,180 ) Equity investments @ fair value $28,710 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Whispering, Inc. sold 310 shares of Chance Company for $10 per share. 3. On May 15, Whispering, Inc. purchased 90 more shares of Evers Company stock at $16 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Whispering, Inc. sold the remaining Chance shares for $8 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 $19 and Rogers $20.
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Answer a Journal Entries in the books of Whispering Inc 1During year 2020 i On March 1 Rogers paid 2 per dividend900 shares2 BankCash Ac dr 1800 To Di... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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