Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2021, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long-term investments. Common

image text in transcribedimage text in transcribedimage text in transcribed

On December 31, 2021, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long-term investments. Common Stock Shares Cost C Co. 1,050 $50,400 D Co. 5,090 38,175 E CO. 1,199 25,179 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 investees. In 2022, the following transactions occurred. July 1 Aug, 1 Sept. 1 Oct. 1 Received $2.00 per share semiannual cash dividend on D Co. common stock Received $0.50 per share cash dividend on C Co.common stock. Sold 1,020 shares of D Co. common stock for cash at $8 per share. Sold 313 shares of C Co. common stock for cash at $52 per share. Received $1 per share cash dividend on E Co. common stock. Received $0.50 per share cash dividend on C Co.common stock. Received $2.00 per share semiannual cash dividend on Co. common stock. Nov. 1 Dec 15 31 At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7.30, and E Co. $25. These investments should be classified as long-term. Date Account Titles and Explanation Debit Credit July 1 Cash 10180 Dividend Revenue Aug. 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 1

Authors: Alan Sangster Lewis Gordon Frank Wood

14th Edition

1292208627, 9781292208626

More Books

Students also viewed these Accounting questions

Question

understand possible effects of ethnicity;

Answered: 1 week ago

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago