Question
17.Pam invested in the following equity securities, all of which she purchased on 12-14-18. For each investment, Pam owns less than 5% of the investee's
17.Pam invested in the following equity securities, all of which she purchased on 12-14-18. For each investment, Pam owns less than 5% of the investee's outstanding common stock.
Fair value* Fair value* Fair value*
Name of Company Number of shares Cost per share 12/31/18 12/31/19 12/31/20
G&P 1,000 $10 $12 $13 $16
MartWal 2,000 $14 $15 $11 $17
Worsham 1,500 $20 $19 $24 $23
Hoosier 2,500 $40 $50 $65 $51
* per share amounts
The following transactions related to Pam's investments occurred during 2019:
On 05-10-19, Pam received a $0.20 cash dividend on each share of the Worsham stock.
On 08-20-20, Pam sold one-third of the Worsham stock for $30 per share.
Pam closes her books every December 31. Prepare the entries Pam should make on:
- 12-31-18.
- 05-10-19.
- 12-31-19.
- 08-20-20.
- 12-31-20.
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