On December 31,2021, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long-term investments. Show the balance sheet presentation of the investments at 2022. These investments should be classified as long-term.
On December 31, 2021, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long-term investments Common Stock Shares Cost C CO. 1.050 $50,400 D C 5,090 38,175 E Co. 1,199 25,179 On this date the total fair value of the securities was equal to its cost. The securities are not held forintoence 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. Sold 1.020 shares of D Co. common stock for cash at $8 per share 1 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 Received $2.00 per share semiannual cash dividend on D Co.common stock, Aug Received 50.50 per share cash dividend on Co.common stock. Sept. Sold 1.020 shares of Co.common stock for cash at $8 per share. Oct. Sold 310 shares of C Co.common stock for cash at $52 per share Nov. 1 Received 51 per share cash dividend on E Co.common stock Dec Received $0,50 per share cash dividend on C Co.common stock Received $2.00 per share semiannual cash dividend on D Co.common stock 1 1 15 31 At December 31. the fair values per share of the common stocks were C Co. $47. Co $7.30, and E Co $25. These investments should be classified as long-term, Journalize the 2022 transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit July 1 Cash 10180 Dividend Revenue 1011 Aug. Cash 525 Dividend Revenue 8180 Cash Sept. Stock investments Sept. 1 Cash 8160 Stock Investments 76: Gain on Sale of Stock Investments Oct. 1 Cash 16120 Stock Investments 14BE 12 Gain on Sale of Stock Investments 1199 Nov. 1 Cash 11 Dividend Revenue 320 Des 15 Cash GRM Dividend Revenue 11 Dec. 15 Cash 370 Dividend Revenue 33 li Dec 31 Cash 8140 81 Dividend Revenue Post to the account Stock Investments. Stock Investments 113754 7650 Jan. 1 Balance Sept. 1 Oct. 1 14880 Dec 31 Balance 91224 (b) Your answer is correct. Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Wildhorse has less than a 20% ownership interest in all these common stocks (C Co.D Co and E Co.). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Dec. 31 Fair Value Adjustment-Stock 3242 Unrealinod Gain or loss Income Show the balance sheet presentation of the investments at 2022. These investments should be classified as long term. Wildhorse Associates (Partial) Balance Sheet
