On December 31, 2021, the end of its first year of operations, Crane Associates owned the...

 

Transcribed Image Text:

On December 31, 2021, the end of its first year of operations, Crane Associates owned the following securities, that are held as a long- term investments. The securities are not held for influence or control of the investee. Common Stock Gehring Co. Wooderson Co. Kitselton Co. Aug. Sept. Oct. Nov. 1 1 1 On December 31, 2021, the total fair value of the securities was equal to its cost. In 2022, the following transactions occurred. 1 Shares Deci 15 Dec. 31 2,100 4.900 1,400 Cost $58.800 44.100 28,000 Received $0.50 per share cash dividend on Gehring Co. common stock. Sold 1.470 shares of Wooderson Co. common stock for cash at $8 per share. Sold 840 shares of Gehring Co. common stock for cash at $31 per share. Received $2 per share cash dividend on Kitselton Co. common stock. Received $0.50 per share cash dividend on Gehring Co. common stock. Received $2 per share annual cash dividend on Wooderson Co. common stock. At December 31, the fair values per share of the common stocks were: Gehring Co. $30, Wooderson Co. $8, and Kitselton Co. $18. These investments should be classified as long-term. (a) Journalize the 2022 transactions and post to the account Stock Investments. (Use the T-account form.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date → Account Titles and Explanation Debit Credit On December 31, 2021, the end of its first year of operations, Crane Associates owned the following securities, that are held as a long- term investments. The securities are not held for influence or control of the investee. Common Stock Gehring Co. Wooderson Co. Kitselton Co. Aug. Sept. Oct. Nov. 1 1 1 On December 31, 2021, the total fair value of the securities was equal to its cost. In 2022, the following transactions occurred. 1 Shares Deci 15 Dec. 31 2,100 4.900 1,400 Cost $58.800 44.100 28,000 Received $0.50 per share cash dividend on Gehring Co. common stock. Sold 1.470 shares of Wooderson Co. common stock for cash at $8 per share. Sold 840 shares of Gehring Co. common stock for cash at $31 per share. Received $2 per share cash dividend on Kitselton Co. common stock. Received $0.50 per share cash dividend on Gehring Co. common stock. Received $2 per share annual cash dividend on Wooderson Co. common stock. At December 31, the fair values per share of the common stocks were: Gehring Co. $30, Wooderson Co. $8, and Kitselton Co. $18. These investments should be classified as long-term. (a) Journalize the 2022 transactions and post to the account Stock Investments. (Use the T-account form.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date → Account Titles and Explanation Debit Credit