Question
Ayayai, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 980 shares @ $16 each $15,680 Rogers Company 880 shares @
Ayayai, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 980 shares @ $16 each $15,680
Rogers Company 880 shares @ $21 each 18,480
Chance Company 490 shares @ $9 each 4,410
Equity investments @ cost 38,570 Fair value adjustment (7,780 )
Equity investments @ fair value $30,790
During 2020, the following transactions took place.
1. On March 1, Rogers Company paid a $2 per share dividend.
2. On April 30, Ayayai, Inc. sold 290 shares of Chance Company for $10 per share.
3. On May 15, Ayayai, Inc. purchased 110 more shares of Evers Company stock at $16 per share.
4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $20, and Chance $8.
During 2021, the following transactions took place.
5. On February 1, Ayayai, Inc. sold the remaining Chance shares for $8 per share.
6. On March 1, Rogers Company paid a $2 per share dividend.
7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.
8. At December 31, 2021, the stocks had the following price per share values: Evers $19 and Rogers $22.
Prepare journal entries for each of the above transactions.
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