On December 31, 2021, the end of its first year of operations, Botani Associates owned the following

Question:

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

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 Received $2.00 per share semiannual cash dividend on D Co. common stock.?

Aug. 1 Received $0.50 per share cash dividend on C Co. common stock.?

Sept. 1 Sold 1,000 shares of D Co. common stock for cash at $9 per share.?

Oct. 1 Sold 300 shares of C Co. common stock for cash at $53 per share.?

Nov. 1 Received $1 per share cash dividend on E Co. common stock.?

Dec. 15 Received $0.50 per share cash dividend on C Co. common stock.?

31 Received $2.20 per share semiannual cash dividend on D Co. common stock.

At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7, and E Co. $24. These investments should be classifi ed as long-term.?

Instructions?

a. Journalize the 2022 transactions and post to the account Stock Investments. (Use the T-account form.)?

b. Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Botani has less than a 20% ownership interest in all these common stocks (C Co., D Co., and E Co.).?

c. Show the balance sheet presentation of the investments at 2022. These investments should be classified as long-term.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...