On December 31, 2021, the end of its first year of operations, Wildhorse Associates owned the following securities, that are held as a long-term investments. The securities are not held for influence or control of the investee.

Common Stock		Shares		Cost
Gehring Co.		2,200		$70,400
Wooderson Co.		5,200		46,800
Kitselton Co.		1,500		30,000

On December 31, 2021, the total fair value of the securities was equal to its cost. In 2022, 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 $8 per share.
Oct.	1		Sold 880 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. $8, and Kitselton Co. $18. These investments should be classified as long-term.

(a)

• Your Answer
• Correct Answer (Used)

Journalize the 2022 transactions and post to the account Stock Investments. (Use the T-account form.) (List all debit entries before credit entries. 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

	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

	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

	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

	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

	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

	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Stock Investments

choose a transaction date

	enter a debit amount	choose a transaction date

	enter a credit amount
choose a transaction date

	enter a debit amount

	choose a transaction date

	enter a credit amount
choose the end date of the accounting period

	enter a debit balance	choose the end date of the accounting period

	enter a credit balance

(b)

New attempt is in progress. Some of the new entries may impact the last attempt grading.

Your answer is partially correct.

Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. (List all debit entries before credit entries. 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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount

eTextbook and Media

Assistance Used

• eTextbook 1
• eTextbook 2

List of Accounts

Attempts: 1 of 2 used

(c)

Partially correct answer icon

Your answer is partially correct.

Show the balance sheet presentation of the investments at December 31, 2022. At this date, Wildhorse Associates has common stock $1,507,000 and retained earnings $1,033,000.

Wildhorse Associates Balance Sheet (Partial) choose the accounting period

select an opening name for subsection one

select a balance sheet item

					$enter a dollar amount
select an opening section name

select a balance sheet item

			$enter a dollar amount
select a balance sheet item

			enter a dollar amount
select a closing name for subsection two

			enter a total amount for subsection two
select between addition and deduction

: select a balance sheet item

			enter a dollar amount
select a closing section name

					$enter a total amount for this section

eTextbook and Media

Assistance Used

• eTextbook 1
• eTextbook 2
• Video

List of Accounts

Attempts: 1 of 2 used