on dec 31, 2019, the end of its first year of operations, crane associates owned the following securities that are held as long term investments.

a) journalize the 2020 transactions.

b) post to the account stock investments.

c) prepare the adjusting entry at dec 31,2020, to show the securities at fair value. crane had less than a 20% ownership interest in all theze common stocks. (C co., D co., and E co.)

d) show the balance sheet presentation of the investments at 2020. These investments should be classified as long-term. At this date crane associates has common stock $2,070,000 and retained earnings of $1,286,000.

Problem H-03 On December 31, 2019, the end of its first year of operations, Crane Associates owned the following securities that are held as long-term investments. Common Stock Shares Cost . 1,000 $47,000 D Co. 4.520 34,352 E Co. 1,138 23,898 On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2020, the following transactions occurred. July 1 Received $2 per share semiannual cash dividend on D Co. common stock Aug Received $0.50 per share cash dividend on c Co. common stock Sept. 1 Sold 1,070 shares of D Co. common stock for cash at $9 per share. Oct Sold 306 shares of Co. common stock for cash at $6 per share Now 1 Received 51 per share cash dividend on to common stock Dec. 15 Received $0.50 per share cash dividend on Cocommon stock 31 Received 520.00 per share semiannual cash dividend on D Co. common stock At December 31, the fair values per share of the common stocks were co 646, CO 87.40, and E Co 25. These investments should be assified as long term. 1 1 Journalize the 2020 transactions (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem Round answers to o decimal places, .9: 5.275.) Date Account Tities and Explanation Debit Credit Journalize the 2020 transactions (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit . Post to the account Stock Investments. Stock Investments Post to the account Stock Investments Stock Investments . . . . Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. Crane has less than a 20% ownership interest in all these common stocks (C Co., Co., and Co.). (Credit account tities are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec. 31 Show the balance sheet presentation of the investments at 2020. These investments should be classified as long term. At this date, Crane Associates has common stock $2.070,000 and retained earnings $1,286,000 Crane Associates (Partial) Balance Sheet + . Question Attempts: 0 of 1 used