Question
On December 31, 2020, Ivanhoe Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of
On December 31, 2020, Ivanhoe Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.
Common Stock | Shares | Cost | ||
---|---|---|---|---|
Gehring Co. | 2,000 | $64,000 | ||
Wooderson Co. | 5,200 | 36,400 | ||
Kitselton Co. | 1,800 | 39,600 |
On December 31, 2020, the total fair value of the securities was equal to its cost. In 2021, the following transactions occurred:
Aug. | 1 | Received $0.50 per share cash dividend on Gehring Co. common stock. | |
Sept. | 1 | Sold 1,560 shares of Wooderson Co. common stock for cash at $6 per share. | |
Oct. | 1 | Sold 800 shares of Gehring Co. common stock for cash at $35 per share. | |
Nov. | 1 | Received $2 per share cash dividend on Kitselton Co. common stock. | |
Dec. | 15 | Received $0.50 per share cash dividend on Gehring Co. common stock. | |
Dec. | 31 | Received $2 per share annual cash dividend on Wooderson Co. common stock. |
At December 31, the fair values per share of the common stocks were: Gehring Co. $34, Wooderson Co. $6, and Kitselton Co. $20.
Journalize the 2021 transactions and post to the account Stock Investments. (Use the T-account form.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Date | Account Titles and Explanation | Debit | Credit | |
---|---|---|---|---|
choose a transaction date Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | ||||
| ||||
choose a transaction date Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | ||||
choose a transaction date Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | ||||
choose a transaction date Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | ||||
choose a transaction date Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | ||||
Stock Investments | |||
---|---|---|---|
choose a transaction date Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal. | enter a debit amount | choose a transaction date Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal. | |
enter a debit balance | choose the end date of the accounting period Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal. |
List of Accounts
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