Here is Ivanhoe Companys portfolio of long term stock investments at December 31, 2021, the end of its first year of operations Cost 1,400 shares of Willhite Corporation common stock $70,000 1,700 shares of Hutcherson Corporation common stock 96,900 1,000 shares of Downing Corporation preferred stock 30,000 On December 31, the total cost of the portfolio equaled the total fair value Ivanhoe had the following transactions related to the securities during 2022 Jan 20 Sold all 1,400 shares of Willhite Corporation common stock at $53 per share 28 Purchased 480 shares of $67 par value common stock of Liggett Corporation at $75 per share 30 Received a cash dividend of $1 15 per share on Hutcherson Corp common stock Feb 8 Received cash dividends of $0 30 per share on Downing Corp preferred stock 18 Sold all 1,000 shares of Downing Corp preferred stock at $29 per share July 30 Received a cash dividend of $1 00 per share on Hutcherson Corp common stock Sept 6 Purchased an additional 890 shares of $15 par value common stock of Liggett Corporation at $79 per share Dec 1 Received a cash dividend of $1 30 per share on Liggett Corporation common stock At December 31, 2022, the fair values of the securities were Hutcherson Corporation common stock $61 per share Liggett Corporation common stock $69 per share (a) Prepare journal entries to record the transactions (List all debit entries before credit entries 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 Record journal entries in the order presented in the problem )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 11, 2024

Here is Ivanhoe Companys portfolio of long-term stock investments at December 31, 2021, the end of its first year of operations. Cost 1,400 shares of

Here is Ivanhoe Companys portfolio of long-term stock investments at December 31, 2021, the end of its first year of operations.

		Cost
1,400 shares of Willhite Corporation common stock		$70,000
1,700 shares of Hutcherson Corporation common stock		96,900
1,000 shares of Downing Corporation preferred stock		30,000

On December 31, the total cost of the portfolio equaled the total fair value. Ivanhoe had the following transactions related to the securities during 2022.

Jan.	20	Sold all 1,400 shares of Willhite Corporation common stock at $53 per share.
	28	Purchased 480 shares of $67 par value common stock of Liggett Corporation at $75 per share.
	30	Received a cash dividend of $1.15 per share on Hutcherson Corp. common stock.
Feb.	8	Received cash dividends of $0.30 per share on Downing Corp. preferred stock.
	18	Sold all 1,000 shares of Downing Corp. preferred stock at $29 per share.
July	30	Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock.
Sept.	6	Purchased an additional 890 shares of $15 par value common stock of Liggett Corporation at $79 per share.
Dec.	1	Received a cash dividend of $1.30 per share on Liggett Corporation common stock.

At December 31, 2022, the fair values of the securities were:

Hutcherson Corporation common stock		$61 per share
Liggett Corporation common stock		$69 per share

(a)

Prepare journal entries to record the transactions. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.)