Question
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments.
| July 22 | Purchased 1,300 shares of Hunt Corporation at $22 per share. |
|---|---|
| September 5 | Received a $2 cash dividend for each share of Hunt Corporation. |
| September 27 | Purchased 3,400 shares of HCA at $28 per share. |
| October 3 | Sold 1,300 shares of Hunt at $17 per share. |
| October 30 | Purchased 1,000 shares of Black & Decker at $53 per share. |
| December 17 | Received a $3 cash dividend for each share of Black & Decker. |
| December 31 | Fair value of the short-term stock investments is $153,000.= |
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Contemporary Auditing real issues and cases
Authors: Michael C. Knapp
9th edition
978-1133839552, 113383955X, 1133187897, 978-1133710424, 1133710425, 978-1133187899
