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2. On December 31, 2020 Woods International owned the following securities held as a long-term investment. The securities were not held for influence or control
2. On December 31, 2020 Woods International owned the following securities held as a long-term investment. The securities were not held for influence or control of the investee. Common Stock Shares Cost Trevino Co. 2,000 $60,000 Player Co. 5,000 45,000 Palmer Co. 1,500 30,000 On December 31, 2020, the total fair value of the securities was equal to their cost. In 2021 the following transactions occurred. July 1 Received $1 per share semiannual dividend on Player Co. common stock. Aug. 1 Received $.50 per share cash dividend on Trevino Co. common stock. Sept. 1 Sold 1,500 shares of Player Co. common stock for cash at $8 per share. Oct. 1 Sold 800 shares of Trevino Co. common stock for cash at $33 per share. Nov. 1 Received $1 per share cash dividend on Palmer Co. common stock. Dec. 15 Received $.50 per share cash dividend on Trevino Co. common stock. Dec. 31 Received $1 per share semiannual cash dividend on Player Co. common stock. At December 31, the fair value per share of the common stocks were: Trevino Co. $32, Player Co. $8, and Palmer Co. $18. Instructions a. Journalize the 2021 transactions and post to the account Stock Investments. (Use the T-account form) b. Prepare the necessary adjusting entry at December 31, 2021, to show the securities at fair value. The stock should be classified as available-for-sale securities.. C. Show the balance sheet presentation of the investments at December 31, 2021
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