In January 2022. the management of Ivanhoe Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Jan Feb 1 Mar 1 July 1 1 Purchased 65 $1,000,8% TRC bonds for $65.000. Interest is payable annually on December 31. Purchased 1,240 shares of LAF common stock for $54,560. Purchased 460 shares of NCL. common stock for $18.400, Received a cash dividend of $0.80 per share on the LAF common stock Sold 202 shares of LAF common stock at $43 per share. Received $2 per share cash dividend on the NCL. common stock. Received the annual interest on the TRC bonds. 31 Sold the TRC bonds for $72.215. Aug 1 Sept. 1 Dec 31 At December 31, the fair values of the LAF and NC. common stocks were $40 and $33 per share, respectively. These stock investments by Ivanhoe Company provide less than a 20% ownership interest. (a) Your answer is correct Journalize the above transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit an Debt investments 65000 Cash 65000 eb1 Stock Investments 54560 Cash 54560 Stock Investments 18400 Cash 18400 uly 1 Cash 992 Dividend Revenue 992 Aug 1 > Cash 8686 Loss on Sale of Stock Investments 202 Stock Investments 8888 ept 1 Cash 920 Dividend Revenue 920 Dec 31 Cash 5200 Interest Revenue 5200 (To record interest) Jer 31 V Cash 72.215 Debt investments 65000 Gain on Sale of Debt Investments 7215 Post to the accounts Debt investments and stock investments. (If the balance is zero (0) select date from the drop down and enter for the amount in the column that represents the normal balance for the account) Stock Investments Feb. 1 54560 Aug 1 3880 18400 Dec 31 Bal 64072 Debt investments sani 65.000 Dec 31 65.000 Dec 31 1 O e Textbook and Media List of Accounts Attempts: 2 of 3 used (b) Your Answer Correct Answer (Used) Your answer is partially correct. Prepare the adjusting entry at December 31, 2022, to report the investments at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Dec 31 Unreal red Gain or Loss-Income 64072 Fair Value Adjustment-Stock 64072 eTextbook and Media Solution List of Accounts Attempts: 3 of 3 used (c) Show the balance sheet presentation of investment securities at December 31, 2022. Ivanhoe Company (Partial) Balance Sheet December 31, 2022 Investments Debt Investments
