On December 31, 2016, Ogallala Associates owned the following securities, held as a long-term investment. The securities

Question:

On December 31, 2016, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.
Ordinary Shares Shares Cost
Carlene Co.........................2,000......£60,000
Riverdale Co.......................5,000........45,000
Raczynski Co......................1,500........30,000
On December 31, 2016, the total fair value of the securities was equal to its cost. In 2017, the following transactions occurred.
Aug. 1 Received £0.70 per share cash on Carlene Co. ordinary shares.
Sept. 1 Sold 2,000 ordinary shares of Riverdale Co. for cash at £8 per share.
Oct. 1 Sold 800 ordinary shares of Carlene Co. for cash at £33 per share.
Nov. 1 Received £1 per share cash on Raczynski Co. ordinary shares.
Dec. 15 Received £0.70 per share cash on Carlene Co. ordinary shares.
31 Received £1 per share annual cash on Riverdale Co. ordinary shares.
At December 31, the fair values per share of the ordinary shares were Carlene Co. £32, Riverdale Co. £8, and Raczynski Co. £18.
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 investments at December 31, 2017. At this date, Ogallala Associates has share capital-ordinary £1,500,000 and retained earnings £1,000,000.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...