Big Brother Holdings, Inc. had the following available-for- sale investment portfolio at January 1, 2008. During 2008,
Question:
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During 2008, the following transactions took place.
1. On March 1, Josie Company paid a $2 per share dividend.
2. On April 30, Big Brother Holdings, Inc. sold 300 shares of David Company for $10 per share.
3. On May 15, Big Brother Holdings, Inc. purchased 50 more shares of Earl Co. stock at $16 per share.
4. At December 31, 2008, the stocks had the following price per share values: Earl $17, Josie $19, and David $8.
During 2009, the following transactions took place.
5. On February 1, Big Brother Holdings, Inc. sold the remaining David shares for $7 per share.
6. On March 1, Josie Company paid a $2 per share dividend.
7. On December 21, Earl Company declared a cash dividend of $3 per share to be paid in the next month.
8. At December 31, 2009, the stocks had the following price per shares values: Earl $19 and Josie $21.
Instructions
(a) Prepare journal entries for each of the above transactions.
(b) Prepare a partial balance sheet showing the Investments account at December 31, 2008 and2009.
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Step by Step Answer:
a 1 3108 Cash 1800 Dividend Revenue 1800 900 X 2 2 43008 Cash 3000 Gain on Sale of Stock 300 Availab...View the full answer
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
