PA2-3A On December 31, 2016, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. Ordinary Shares Shares Cost Carlene Co. Riverdale Co. 2,000 60,000 45,000 5,000 Raczynski Co. 1,500 30,000 On December 31, 2016, the total fair value of the securities was equal to its cost. In 2017, the following transactions occurred. Aug. 1 Received 0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. 1 Sold 2,000 ordinary shares of Riverdale Co. for cash at 8 per share. Oct. 1 Sold 800 ordinary shares of Carlene Co. for cash at 33 per share. Nov. 1 Received 1 per share cash dividend on Raczynski Co. ordinary shares. Dec. 15 Received 0.70 per share cash dividend on Carlene Co, ordinary shares. 31 Received 1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. 32, Riverdale Co. 8, and Raczynski Co. 18. Instructions (a) Journalize the 2017 transactions and post to the account Share Investments. (Use the T-account form.) (b) Prepare the adjusting entry at December 31, 2017, to show the securities at fair value. The shares should be classified as non-trading securities. (c) Show the statement of financial position presentation of the investments at December 31, 2017. At this date, Ogallala Associates has share capital-ordinary 1,500,000 and retained earnings 1,000,000. 12-4A Control Alt Design Ltd. acquired 30% of the outstanding ordinary shares of Walter Company on January 1, 2017, by paying 800,000 for the 45,000 shares. Walter declared and paid 0.30 per share cash dividends on March 15, June 15, September 15, and Decem- ber 15, 2017. Walter reported net income of 320,000 for the year. At December 31, 2017, the market price of Walter ordinary shares was 24 per share. Instructions (a) Prepare the journal entries for Control Alt Design for 2017, assuming Control Alt Design cannot exercise significant influence over Walter. Use the cost method and assume that Walter ordinary shares should be classified as a trading security. (b) Prepare the journal entries for Control Alt Design for 2017, assuming Control Alt Design can exercise significant influence over Walter. Use the equity method. (c) Indicate the statement of financial position and income statement account balances at December 31, 2017, under each method of accounting.