Segovia Packing Company owns numerous investments in the stock of other companies. Assume that Segovia completed the

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Segovia Packing Company owns numerous investments in the stock of other companies. Assume that Segovia completed the following investment transactions:

\section*{19X2}

Feb. 12 Purchased 20,000 shares, which exceeds 20 percent, of the common stock of Agribusiness, Inc., at total cost of \(\$ 715,000\).

July 1 Purchased 8,000 additional shares of Agribusiness common stock at cost of \(\$ 300,000\).

Aug. 9 Received annual cash dividend of \(\$ 0.90\) per share on the Agribusiness investment.

Oct. 16 Purchased 800 shares of Apex Company common stock as a trading investment, paying \(\$ 411 / 2\) per share.

Nov. 30 Received semiannual cash dividend of \(\$ 0.60\) per share on the Apex investment.

Dec. 31 Received annual report from Agribusiness, Inc. Net income for the year was \(\$ 510,000\).

Of this amount, Segovia's proportion is 35 percent.

The current market value of the Apex stock is \(\$ 34,100\).

19X3 Mar. 3 Sold 4,000 shares of Agribusiness stock for net cash of \(\$ 141,000\).

\section*{Required}

Record the transactions in the general journal of Segovia Packing Company.

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Financial Accounting

ISBN: 9780133118209

2nd Edition

Authors: Charles T. Horngren, Jr. Harrison, Walter T.

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