Question
Headland, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 950 shares @ $16 each $15,200 Rogers Company 910 shares @
Headland, Inc. had the following equity investment portfolio at January 1, 2020.
Evers Company 950 shares @ $16 each $15,200
Rogers Company 910 shares @ $20 each 18,200
Chance Company 480 shares @ $8 each 3,840
Equity investments @ cost 37,240
Fair value adjustment (7,240 )
Equity investments @ fair value $30,000
During 2020, the following transactions took place.
1. On March 1, Rogers Company paid a $2 per share dividend.
2. On April 30, Headland, Inc. sold 280 shares of Chance Company for $10 per share.
3. On May 15, Headland, Inc. purchased 90 more shares of Evers Company stock at $17 per share.
4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $7.
During 2021, the following transactions took place.
5. On February 1, Headland, Inc. sold the remaining Chance shares for $7 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 $20 and Rogers $21.
Prepare journal entries for each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No. Account Titles and Explanation Debit Credit
(1)________________________________ ___________________ ________________
___________________________________ ____________________ ________________
(2) _________________________________ ____________________ __________________
_________________________________ ______________________ _____________________
_______________________________ ______________________ _____________________
(3) _________________________________ _____________________ ____________________
________________________________ ______________________ ___________________
(4) _____________________________ ______________________ _______________________
______________________________ ______________________ _____________________
(5) _______________________________ ______________________ ______________________
______________________________ _______________________ _____________________
_____________________________ ________________________ _______________________
(6) ____________________________ _______________________ ________________________
____________________________ _________________________ _______________________
(7) ______________________________ __________________________ _________________________
____________________________ __________________________ ___________________________
(8) ______________________________ _________________________ _________________________
_______________________________ _________________________ _____________________________
Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021.
Headland, Inc.
Balance Sheet (Partial)
_________________ December 31, 2020 December 31, 2021
___________________ $____________ $ __________
_____________________
_______________________ _____________________ _____________
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