Question
On December 31, 2021, the end of its first year of operations, Sandhill Associates owned the following securities that are held as long-term investments. Common
On December 31, 2021, the end of its first year of operations, Sandhill Associates owned the following securities that are held as long-term investments.
Common Stock | Shares | Cost | |||
---|---|---|---|---|---|
C Co. | 1,100 | $53,900 | |||
D Co. | 4,880 | 31,720 | |||
E Co. | 1,178 | 25,916 |
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 2022, the following transactions occurred.
July | 1 | Received $2.00 per share semiannual cash dividend on D Co. common stock. | ||
Aug. | 1 | Received $0.50 per share cash dividend on C Co. common stock. | ||
Sept. | 1 | Sold 1,100 shares of D Co. common stock for cash at $9 per share. | ||
Oct. | 1 | Sold 330 shares of C Co. common stock for cash at $57 per share. | ||
Nov. | 1 | Received $1 per share cash dividend on E Co. common stock. | ||
Dec. | 15 | Received $0.50 per share cash dividend on C Co. common stock. | ||
31 | Received $2.30 per share semiannual cash dividend on D Co. common stock. |
At December 31, the fair values per share of the common stocks were C Co. $48, D Co. $6.30, and E Co. $26. These investments should be classified as long-term.
(a)
Journalize the 2022 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.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount |
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