Instructions Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc. which has a focal year ending on December 31 Record these transactions on page 10 Year 1 Jan 22 8 Sep 8 Purchased 19,800 shares of Sankal lnc, as an available-for-salo security at $19 per sharo, including the brokerage commission Received a cash dividend of $0.21 per share on Sankal in stock Acash dividend of $0.24 pet share was received on the Sanical stock Sold 1,600 shares of Sankul tea, stock at $15 per share fosa brokerage commission of 580 Sankalino. Is classified as an available for sale investment and is adjusted to a fair value of $25 per share. Use the valuation allowance for available for sale investments count in making the adjustment Oct 17 Dec 31 Record these transactions on page 11 Year 2 Jan 10 Purchased an influental interest in Imboden int.for 886.90 by purchasing 121.500 shares drechy from the state of the founder of Imboden inc. There are 450.000 shares of of moden be 0.00 ounManding Received a cash dividend of 50.29 per share on Sankaline stock Raceived a cash dividend of 50.24 por share plus en dividend of 0.06 por share on Sale Mar 10 Sen 12 Dec 31 Dec 31 Received $53.800 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $407,200 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. Sanka Inc. in classified as an available-for-sale investment and is adjusted to a fair value of 523 per sharo. Use the valuation allowance for available for sale investments account in making the adjustinent for the decrease in tair value from $25 to $23 per share. Required: 1. Joumatico no entries to record these transactions. Refer to the information given and the Churt of Accounts provided for the exact wording of the answer choices for text entries. 2. Prepare the investment-related asset and stockholders' equily balance sheet presentation for Forte me on December 31, Year 2, assuming the Retained Earrings balance on December 31, You 2, 65415,000. Meter to the Chart of Accounts and Amount Descrjetions provided for the exact wording of the answer choices for baut entries. "Lose or Pus www automatically appear tis required. For those bones in which you must enter subtracted or negative numbers use a minus sign Chart of Accounts CHART OF ACCOUNTS Forte In General Ledger ASSETS 110 Cash 111 Party Cash 120 Accounts Receivable REVENUE 410 Sales 811 Introversas 612 Dividend Revenue 621 Income of Imboden Inc. 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Sankal Inc. 163 Investment in Imboden Inc. Stock 165 Valuation Allowance for Trading Investments 168 Valuation Allowance for Available for Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expenso 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expenso 538 Store Supplies Expenso 501 Depreciation Experise-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Imboden Inc LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payablo 241 Salaries Payable 251 Sales Tax Payable 731 Loss on Sale of investments EQUITY 741 Unrealized Loss on Trading Investments 311 Common Stock 312 Paid-in Capital in Excess of Par Common Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (L088) on Available for Sale Investments 351 Cash Dividends 352 Stock Dividends 390 Income Summary Amount Descriptions Amount Description Available for sale investments at cost Available for sale investments at fair value) Net Income Netlosa Other comprehensive income (s) Other income (oso 12. Journals the entries to record these transaction. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DENIE CH ASSETS LATIES EQUITY 1 2 . 1 11 to, Journaire the entries to record these transactions. Refer to the information given and De Chart of Accounts provided for the exact wording of the answer choices for text entries PAGE 1 ACCOUNTING EQUATION JOURNAL DATE DECTION POST DERIT CREDIT AR . TOUT 1 M 2. Prepare the investeerit-related asset and stockholders equity balance sheet presentation for Forte Inc on December 31. Year 2, assuming the Retained Earings balance on December 31, Your 2. $415.000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Tossor Plus automatically appear if it is required. For those boxes in which you must enter subtracted or negative number use a minus sign Forte Inc Balance Shout (selected tente) December 31. Year 2 Gent 1 1 . 1 Stocholters equity