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 4,000 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 Analysis tab - For each transaction, indicate the total impact on assets and equity. If equity 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. 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 Prepare journal entries to record each of the transactions and events for 2019. Prepare the year-end adjustment to fair value, if any. 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 30,600 Stock investments Cash 30.600 4 Aug 15 7,150 Cash Dividend revenue 7,150 5 Aug 28 Cash 92,400 Gain on sale of stock investments 9,900 Stock investments 82,500 6 Oct 01 Cash 11,600 Dividend revenue 11,600 7 Dec 15 Cash 3,520 Dividend revenue 3,520 N 8 Dec 31 Cash 9,200 Dividend revenue 9,200 9 Dec 31 Cash Fair Value Adjustment - Stock Investments 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 4,000 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 Ledger Account Cash Accounts receivable No. Date Debit Credit No. Debit Credit Date Jan 01 Balance 100,000 1 2 137.500 200.000 30,600 3 Balance 1,045,000 907,500 707,500 676.900 684 050 776.450 788 050 791 570 800 770 Jan 01 Apr 16 Jul 07 Jul 20 Aug 15 Aug 28 Oct 01 Dec 15 Dec 31 4 5 6 7.150 92,400 11,600 3,520 9,200 7 8 Stock investments Inventory No. Date Debit Credit Balance No Debit Credit Date Jan 01 Balance 50,000 1 2 Jan 01 Apr 16 Jul 07 Jul 20 Aug 28 137,500 200,000 30,600 0 0 137.500 337,500 368 100 285,600 3 5 82.500 Accounts payable Long-term notes payable No. Debit Credit No. Debit Credit Date Jan 01 Balance 60.000 Date Jan 01 Balance 280,000 Common stock No. Debit Credit No. Date Jan 01 Balance 315.000 Paid-in capital in excess of par - Common Date Debit Credit Balance Jan 01 90,000 Retained earnings Dividend revenue No. Debit Credit No. Debit Credit Date Jan 01 Balance 450,000 4 Date Jan 01 Aug 15 Oct 01 Dec 15 Dec 31 Balance 0 7,150 18,750 22,270 31.470 7.150 11.600 3.520 9.200 6 7 8 8 Gain on sale of stock investments No. Debit Credit Balance Date Jan 01 Aug 28 5 9.900 9.900 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 4,000 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 Select either unadjusted or adjusted from the drop-down below to see the balances before or after the year-end adjustment to fair value. JCW Corp. Trial Balance December 31, 2019 Account Title Debit Credit Cash $ 800.770 Accounts receivable Stock investments 100,000 285,600 50.000 ttttt EEEEEE Inventory Accounts payable Long-term notes payable Common stock Paid-in capital in excess of par - Common Retained earnings Dividend revenue Gain on sale of stock investments Total 60,000 280,000 315,000 90,000 450,000 31,470 9,900 $ 1,236,370 $ 1,236,370 Requirement General Journal General Ledger Trial Balance Fair Value Adi Transaction Analysis Fin St Impact 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 Cost of investments at December 31: Barcelona Company stock Lafayette Co. stock Fields Co. Total cost # of Shares 2,200 4,000 1,800 Fair value of investments at December 31: # of Shares Fair value per share Fair Value 2,200 4,000 Barcelona Company stock Lafayette Co. stock Fields Co. Total fair value 1,800 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 Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. Show less A Change in Change in equity: As a As a direct Total change component of component of net income stockholders' in equity 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 0 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. 0 0 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 0 0 $ 0 $ 0 $ 0 $ 0 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 titles reported on the 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 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 Prepare journal entries to record each of the transactions and events for 2019. Prepare the year-end adjustment to fair value, if any. 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 30,600 Stock investments Cash 30.600 4 Aug 15 7,150 Cash Dividend revenue 7,150 5 Aug 28 Cash 92,400 Gain on sale of stock investments 9,900 Stock investments 82,500 6 Oct 01 Cash 11,600 Dividend revenue 11,600 7 Dec 15 Cash 3,520 Dividend revenue 3,520 N 8 Dec 31 Cash 9,200 Dividend revenue 9,200 9 Dec 31 Cash Fair Value Adjustment - Stock Investments 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 4,000 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 Ledger Account Cash Accounts receivable No. Date Debit Credit No. Debit Credit Date Jan 01 Balance 100,000 1 2 137.500 200.000 30,600 3 Balance 1,045,000 907,500 707,500 676.900 684 050 776.450 788 050 791 570 800 770 Jan 01 Apr 16 Jul 07 Jul 20 Aug 15 Aug 28 Oct 01 Dec 15 Dec 31 4 5 6 7.150 92,400 11,600 3,520 9,200 7 8 Stock investments Inventory No. Date Debit Credit Balance No Debit Credit Date Jan 01 Balance 50,000 1 2 Jan 01 Apr 16 Jul 07 Jul 20 Aug 28 137,500 200,000 30,600 0 0 137.500 337,500 368 100 285,600 3 5 82.500 Accounts payable Long-term notes payable No. Debit Credit No. Debit Credit Date Jan 01 Balance 60.000 Date Jan 01 Balance 280,000 Common stock No. Debit Credit No. Date Jan 01 Balance 315.000 Paid-in capital in excess of par - Common Date Debit Credit Balance Jan 01 90,000 Retained earnings Dividend revenue No. Debit Credit No. Debit Credit Date Jan 01 Balance 450,000 4 Date Jan 01 Aug 15 Oct 01 Dec 15 Dec 31 Balance 0 7,150 18,750 22,270 31.470 7.150 11.600 3.520 9.200 6 7 8 8 Gain on sale of stock investments No. Debit Credit Balance Date Jan 01 Aug 28 5 9.900 9.900 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 4,000 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 Select either unadjusted or adjusted from the drop-down below to see the balances before or after the year-end adjustment to fair value. JCW Corp. Trial Balance December 31, 2019 Account Title Debit Credit Cash $ 800.770 Accounts receivable Stock investments 100,000 285,600 50.000 ttttt EEEEEE Inventory Accounts payable Long-term notes payable Common stock Paid-in capital in excess of par - Common Retained earnings Dividend revenue Gain on sale of stock investments Total 60,000 280,000 315,000 90,000 450,000 31,470 9,900 $ 1,236,370 $ 1,236,370 Requirement General Journal General Ledger Trial Balance Fair Value Adi Transaction Analysis Fin St Impact 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 Cost of investments at December 31: Barcelona Company stock Lafayette Co. stock Fields Co. Total cost # of Shares 2,200 4,000 1,800 Fair value of investments at December 31: # of Shares Fair value per share Fair Value 2,200 4,000 Barcelona Company stock Lafayette Co. stock Fields Co. Total fair value 1,800 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 Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. Show less A Change in Change in equity: As a As a direct Total change component of component of net income stockholders' in equity 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 0 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. 0 0 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 0 0 $ 0 $ 0 $ 0 $ 0 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 titles reported on the 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