L1501 (Algo) - Based on Problem 15-4A LO P4 CW Corporation had no short-term investments prior to this year. It had the following transactions this year involving short-term stock vestments with insignificant influence. April 16 July 7 July 20 August 15 August 28 October 1 December 15 December 31 Purchased 5,500 shares of Barcelona Company stock at $25 per share. Purchased 4,000 shares of Lafayette Company stock at $50 per share. I Purchased 1,800 shares of Fields Company stock at $17 per share. Received an $1.30 per share cash dividend on the Barcelona Company stock. Sold 3,300 shares of Barcelona Company stock at $28 per share. Received a $2.90 per share cash dividend on the Lafayette Company shares. Received a $1.50 per share cash dividend on the remaining Barcelona Company shares. Received a $2.30 per share cash dividend on the Lafayette Company shares. General Journal Requirement General Ledger Trial Balance Fair Value Adj The year-end fair values per share are: Barcelona Company, $26.00; Lafayette Company, $48.50; and Fields Company, $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. Transaction Analysis Cost of investments at December 31: # of Shares Fin St Impact 2.200 Cost 55.000 Requirement General Journal Step 1: Step 2: Step 3: General Ledger Total cost Trial Balance Fair Value Adj The year-end fair values per share are: Barcelona Company, $26.00; Lafayette Company, $48.50; and Fields Company, $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 of investments at December 31: Barcelona Company stock Lafayette Company stock Fields Company Total fair value Fair value of investments at December 31: Barcelona Company stock Lafayette Company stock Fields Company Transaction Analysis # of Shares 2,200 4,000 1,800 # of Shares 2,200 4,000 1,800 Total unrealized gain/loss as of December 31: Fin St Impact 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 Fair value per share $ $ Cost 55,000 200.000 30,600 285,600 Fair Value Requirement General Journal General Ledger Transaction Trial Balance Fair Value Adj Analysis 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. Apr. 16) Purchased 5,500 shares of Barcelona Company stock at $25 per share. Jul. 7) Purchased 4,000 shares of Lafayette Company stock at $50 per. share. Jul 20) Purchased 1,800 shares of Fields Company stock at $17 per share. Aug 15) Received an $1.30 per share cash dividend on the Barcelona Company stock Aug. 28) Sold 3,300 shares of Barcelona Company stock at $28 per share. Oct 1) Received a $2.90 per share cash dividend on the Lafayette Company shares Dec. 15) Received a $1.60 per share cash dividend on the remaining Barcelona Company shares. Dec 31) Received a $2.30 per share cash dividend on the Lafayette Company shares Dec. 31) Adjusted the securities to year-end fair value. Totals Change in Fin St Impact Change in equity: As a direct As a Total assets component of component of stockholders equity net income $ 0 $ Ein St Impact 0 $ Total change in equity $ 0 $ 0 0 0 0 0 D 0 0 0 0 Show less A Requirement General Journal General Ledger Total net income Trial Balance Fair Value Adj On the transaction analysis tab, you indicated that total income changed by: Select the income statement account balances that prove this amount 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. Transaction Analysis $ 0 Fin St Impact 0 0