GL1501 - Based on Problem 15-4A LO P4 JCW Corp. had no short

GL1501 - Based on Problem 15-4A LO P4 JCW Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017. Apr. 16 Purchased 5,500 shares of Barcelona Co. stock at $25 per share. July 7 Purchased 4,800 shares of Lafayette Co. stock at $50 per share. 20 Purchased 1,800 shares of Fields Co. stock at $17 per share. Aug. 15 Received an $1.30 per share cash dividend on the Barcelona Co. stock. 28 Sold 3,300 shares of Barcelona Co. stock at $28 per share. Oct. 1 Received a $2.90 per share cash dividend on the Lafayette Co. shares. Dec. 15 Received a $1.60 per share cash dividend on the remaining Barcelona Co. shares. 31 Received a $2.30 per share cash dividend on the Lafayette Co. shares. Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact General Journal tab - Prepare the required journal entries for each of the transactions of JCW Corp. for the current year. Prepare the adjustment to fair value for the available-for-sale portfolio. General Ledger and Trial Balance tabs -The cost of each of the available-for-sale securities can be found on the General Ledger and/or Trial balance tabs. Fair Value Adjustment tab - Calculate the total cost and total fair value of the available-for-sale portfolio, and then use the 3-step adjusting entry process to calculate the amount of the year-end adjustment to fair value. Transaction Ana tab - For each transaction, indicate the total impact on and equity. If changed, indicate whether the change was a component of income or a direct component of stockholders' equity. Financial Statement Impact tab - Prove the accuracy of the totals on the Transaction Analysis tab by selecting the account titles that report the total change in income and equity. View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Apr 16 Stock investments 137,500 Cash 137,500 2 Jul 07 Stock investments 200,000 Cash 200,000 3 Jul 20 Stock investments 30.600 Cash 30,600 4 Aug 15 Cash 7,150 Dividend revenue 7,150 5 Aug 28 92,400 Cash Gain on sale of stock investments Stock investments 9,900 82,500 6 Oct 01 Cash 11,600 Dividend revenue 11,600 7 Dec 15 Cash 3,520 Dividend revenue 3,520 8 Dec 31 Cash 9,200 Dividend revenue 9,200 9 Dec 31 Cash Fair Value Adjustment - Stock Investments General Ledger Account Cash Accounts receivable No. Date Debit Credit No. Date Debit Credit Balance Jan 01 100.000 1 2. 3 137,500 200,000 30.600 Jan 01 Apr 16 Jul 07 Jul 20 Aug 15 Aug 28 Oct 01 Dec 15 Balance 1,045,000 907,500 707,500 676,900 684,050 776,450 788,050 791,570 800,770 4 5 6 7,150 92,400 11,600 3,520 9,200 7 8 Dec 31 Stock investments Inventory No. Date Debit Credit Balance No. Date Debit Credit Balance 50.000 0 Jan 01 1 Jan 01 Apr 16 Jul 07 Jul 20 2 137,500 200,000 30,600 137,500 337,500 368.100 285,600 3 5 Aug 28 82,500 Accounts payable Long-term notes payable Credit No Date Debit Credit No. Date Debit Balance Balance 60,000 Jan 01 Jan 01 280,000 Common stock Credit No. Debit No. Date Jan 01 Debit Paid-in capital in excess of par - Common Date Credit Balance Jan 01 90.000 Balance 315,000 Retained earnings Dividend revenue No. Date Debit Credit No. Date Debit Credit Balance Balance 450,000 Jan 01 0 7,150 4 7,150 Jan 01 Aug 15 Oct 01 Dec 15 6 7 11,600 3,520 9,200 18.750 22.270 31,470 8 Dec 31 Gain on sale of stock investments No. Date Debit Credit Jan 01 Aug 28 Balance 0 9,900 5 9,900 The year-end fair values per share are: Barcelona Co., $26.00; Lafayette Co., $48.50; and Fields Co., $14.00. Calculate the total cost and total fair value of the available-for-sale portfolio as of December 31, and calculate the amount of the required year- end adjusting entry, if any. Cost # of Shares 2,200 Cost of investments at December 31: Barcelona Company stock Lafayette Co. stock Fields Co. 4,000 TTTT 1,800 Total cost Fair value of investments at December 31: # of Shares Fair value per share Fair Value 2,200 Barcelona Company stock Lafayette Co. stock Fields Co. 4.000 1.800 Total fair value Total unrealized gain/loss as of December 31: Step 1: Step 2: Determine what the unadjusted balance in the fair value adjustment equals: Determine what the adjusted balance in the fair value adjustment account should equal: Determine the amount of the adjustment to the fair value adjustment account required to get from Step 1 to Step 2: Step 3: Change in Change in equity: As a direct As a component of Total change component of stockholders' in equity net income equity Total assets $ 0 $ 0 Apr. 16) Purchased 5,500 shares of Barcelona Co. stock at $25 per share. Jul. 7) Purchased 4,000 shares of Lafayette Co. stock at $50 per share. 0 o 0 0 Jul. 20) Purchased 1,800 shares of Fields Co. stock at $17 per share. Aug. 15) Received an $1.30 per share cash dividend on the Barcelona Co. stock. o 0 0 Aug. 28) Sold 3,300 shares of Barcelona Co. stock at $28 per share. Oct. 1) Received a $2.90 per share cash dividend on the Lafayette Co. shares. Dec. 15) Received a $1.60 per share cash dividend on the remaining Barcelona Co. shares. Dec. 31) Received a $2.30 per share cash dividend on the Lafayette Co. shares. Dec. 31) Adjusted the securities to year-end fair value. Totals O 0 $ $ 0 $ 0 $ 0 O Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact Prove the accuracy of your responses on the Transaction Analysis tab by selecting the account title: income statement or as a component of stockholders' equity. $ 0 On the transaction analysis tab, you indicated that total income changed by: Select the income statement account balances that prove this amount: 0 0 0 Total net income On the transaction analysis tab, you indicated that total stockholders' equity changed by: $ 0 Select the stockholders' equity account balance that proves this amount: Change in Retained Earnings due to net income Show transcribed image text View comments (1) GL1501 - Based on Problem 15-4A LO P4 JCW Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017. Apr. 16 Purchased 5,500 shares of Barcelona Co. stock at $25 per share. July 7 Purchased 4,800 shares of Lafayette Co. stock at $50 per share. 20 Purchased 1,800 shares of Fields Co. stock at $17 per share. Aug. 15 Received an $1.30 per share cash dividend on the Barcelona Co. stock. 28 Sold 3,300 shares of Barcelona Co. stock at $28 per share. Oct. 1 Received a $2.90 per share cash dividend on the Lafayette Co. shares. Dec. 15 Received a $1.60 per share cash dividend on the remaining Barcelona Co. shares. 31 Received a $2.30 per share cash dividend on the Lafayette Co. shares. Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact General Journal tab - Prepare the required journal entries for each of the transactions of JCW Corp. for the current year. Prepare the adjustment to fair value for the available-for-sale portfolio. General Ledger and Trial Balance tabs -The cost of each of the available-for-sale securities can be found on the General Ledger and/or Trial balance tabs. Fair Value Adjustment tab - Calculate the total cost and total fair value of the available-for-sale portfolio, and then use the 3-step adjusting entry process to calculate the amount of the year-end adjustment to fair value. Transaction Ana tab - For each transaction, indicate the total impact on and equity. If changed, indicate whether the change was a component of income or a direct component of stockholders' equity. Financial Statement Impact tab - Prove the accuracy of the totals on the Transaction Analysis tab by selecting the account titles that report the total change in income and equity. View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Apr 16 Stock investments 137,500 Cash 137,500 2 Jul 07 Stock investments 200,000 Cash 200,000 3 Jul 20 Stock investments 30.600 Cash 30,600 4 Aug 15 Cash 7,150 Dividend revenue 7,150 5 Aug 28 92,400 Cash Gain on sale of stock investments Stock investments 9,900 82,500 6 Oct 01 Cash 11,600 Dividend revenue 11,600 7 Dec 15 Cash 3,520 Dividend revenue 3,520 8 Dec 31 Cash 9,200 Dividend revenue 9,200 9 Dec 31 Cash Fair Value Adjustment - Stock Investments General Ledger Account Cash Accounts receivable No. Date Debit Credit No. Date Debit Credit Balance Jan 01 100.000 1 2. 3 137,500 200,000 30.600 Jan 01 Apr 16 Jul 07 Jul 20 Aug 15 Aug 28 Oct 01 Dec 15 Balance 1,045,000 907,500 707,500 676,900 684,050 776,450 788,050 791,570 800,770 4 5 6 7,150 92,400 11,600 3,520 9,200 7 8 Dec 31 Stock investments Inventory No. Date Debit Credit Balance No. Date Debit Credit Balance 50.000 0 Jan 01 1 Jan 01 Apr 16 Jul 07 Jul 20 2 137,500 200,000 30,600 137,500 337,500 368.100 285,600 3 5 Aug 28 82,500 Accounts payable Long-term notes payable Credit No Date Debit Credit No. Date Debit Balance Balance 60,000 Jan 01 Jan 01 280,000 Common stock Credit No. Debit No. Date Jan 01 Debit Paid-in capital in excess of par - Common Date Credit Balance Jan 01 90.000 Balance 315,000 Retained earnings Dividend revenue No. Date Debit Credit No. Date Debit Credit Balance Balance 450,000 Jan 01 0 7,150 4 7,150 Jan 01 Aug 15 Oct 01 Dec 15 6 7 11,600 3,520 9,200 18.750 22.270 31,470 8 Dec 31 Gain on sale of stock investments No. Date Debit Credit Jan 01 Aug 28 Balance 0 9,900 5 9,900 The year-end fair values per share are: Barcelona Co., $26.00; Lafayette Co., $48.50; and Fields Co., $14.00. Calculate the total cost and total fair value of the available-for-sale portfolio as of December 31, and calculate the amount of the required year- end adjusting entry, if any. Cost # of Shares 2,200 Cost of investments at December 31: Barcelona Company stock Lafayette Co. stock Fields Co. 4,000 TTTT 1,800 Total cost Fair value of investments at December 31: # of Shares Fair value per share Fair Value 2,200 Barcelona Company stock Lafayette Co. stock Fields Co. 4.000 1.800 Total fair value Total unrealized gain/loss as of December 31: Step 1: Step 2: Determine what the unadjusted balance in the fair value adjustment equals: Determine what the adjusted balance in the fair value adjustment account should equal: Determine the amount of the adjustment to the fair value adjustment account required to get from Step 1 to Step 2: Step 3: Change in Change in equity: As a direct As a component of Total change component of stockholders' in equity net income equity Total assets $ 0 $ 0 Apr. 16) Purchased 5,500 shares of Barcelona Co. stock at $25 per share. Jul. 7) Purchased 4,000 shares of Lafayette Co. stock at $50 per share. 0 o 0 0 Jul. 20) Purchased 1,800 shares of Fields Co. stock at $17 per share. Aug. 15) Received an $1.30 per share cash dividend on the Barcelona Co. stock. o 0 0 Aug. 28) Sold 3,300 shares of Barcelona Co. stock at $28 per share. Oct. 1) Received a $2.90 per share cash dividend on the Lafayette Co. shares. Dec. 15) Received a $1.60 per share cash dividend on the remaining Barcelona Co. shares. Dec. 31) Received a $2.30 per share cash dividend on the Lafayette Co. shares. Dec. 31) Adjusted the securities to year-end fair value. Totals O 0 $ $ 0 $ 0 $ 0 O Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact Prove the accuracy of your responses on the Transaction Analysis tab by selecting the account title: income statement or as a component of stockholders' equity. $ 0 On the transaction analysis tab, you indicated that total income changed by: Select the income statement account balances that prove this amount: 0 0 0 Total net income On the transaction analysis tab, you indicated that total stockholders' equity changed by: $ 0 Select the stockholders' equity account balance that proves this amount: Change in Retained Earnings due to net income Show transcribed image text View comments (1)