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eBook Instructions Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate

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eBook Instructions Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31: Record these transactions on page 10: Yeart Jan Mar A Sep 22 Purchased 23,600 shares of Sankal Inc. as an available for sale security at $18 per share, including the brokerage commission B Received a cash dividend of $0.21 per share on Sankal Inc. stock. A cash dividend of $0.24 per share was received on the Sankal stock. 17 Sold 4 700 shares of Sankal in stock at $15 per share less a brokerage commission of 560 31 Sankal Inc is classified as an available for sale investment and is adjusted to a fair value of $26 per share. Use the valuation allowance for available for sale investments account in making the adjustment Oct Dec Record these transactions on page 11: Year 2 Jan. 10 Purchased an influential interest in Imboden Inc. for $1,287,000 by purchasing 165,000 shares directly from the estate of the founder of Imboden Inc. There are 500,000 shares of Imboden Inc. stock outstanding. Received a cash dividend of 50.29 per share on Sankal Inc. stock. Received a cash dividend of $0.24 per share plus an extra dividend of $0.06 per share on Sankal Inc. Mar. 10 Sep. 12 stock Dec. 31 Dec. 31 Received $56,400 of cash dividends on Imboden inc. stock. Imboden Inc. reported net income of $489,800 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $21 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $26 to $21 per share. Required: 1. Joumalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. 2. Prepare the investment-related asset and stockholders' equity balance sheet presentation for Forte Inc. on December 31, Year 2. assuming the Retained Earnings balance on December 31, Year 2, is $376,000 Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required for those boxes in which you must enter subtracted or negative numbers use a minus sign

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