Exercise 15-12 (Algo) Transactions and fair value adjustments for stock investments with insignificant influence LO P4

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 1,400 shares of Hunt Corporation at $25 per share.
September 5	Received a $2 cash dividend for each share of Hunt Corporation.
September 27	Purchased 3,200 shares of HCA at $22 per share.
October 3	Sold 1,400 shares of Hunt at $20 per share.
October 30	Purchased 1,000 shares of Black & Decker at $44 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 $118,000.=

1 No Answer is not complete. Date July 22 General Journal Debit Credit Stock investments 35,000 Cash 35,000 2 September 05 Cash Dividend revenue 3 September 27 Stock investments Cash 2,800 2,800 70,400 70,400 4 October 03 Cash 28,000 Loss on sale of stock investments 7,000 Stock investments 35,000 5 October 30 Stock investments Cash 6 December 17 Cash Dividend revenue 44,000 44,000 3,000 3,000 7 December 31 Fair value adjustment - Stock 3,600 Unrealized gain - Income 3,600