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P16-3A On December 31, 2017, Turnball Associates owned the following securities, Journalize transa a long-term investment. The securities are not held for influence or control
P16-3A
On December 31, 2017, Turnball Associates owned the following securities, Journalize transa a long-term investment. The securities are not held for influence or control of the estments. I of the adjusting entry for stock investee. (LO 2, 3) Common Stock Gehring Co. Wooderson Co. Kitselton Co 2,000 5,000 1,500 Cost $60,000O XLS 45,000 30,000 10 On December 31, 2017, the total fair value of the securities was equal to its cost. In 2018, the following transactions occurred. Aug. 1 Sept. 1 Oct. 1 Nov. 1 Received $0.50 per share cash dividend on Gehring Co. common stock. Sold 1,500 shares of Wooderson Co. common stock for cash at $8 per share. Sold 800 shares of Gehring Co. common stock for cash at $33 per share. Received $1 per share cash dividend on Kitselton Co. common stock. Dec. 15 31 Received $0.50 per share cash dividend on Gehring Co. common stock. Received $1 per share annual cash dividend on Wooderson Co. common stock ring Co. $32, At December 31, the fair values per share of the common stocks were: Geh Wooderson Co. $8, and Kitselton Co. $18. Instructions (a) Journalize the 2018 transactions and post to the account Stock Investments. (Use the (b) Prepare the adjusting entry at December 31, 2018, to show the securities at fair value. b) Unrealized loss $4,100 (c) Show the balance sheet presentation of the investments at December 31, 2018. At this T-account form.) The stock should be classified as available-for-sale securities. te. Turnball Associates has common stock $1,500,000 and retained earnings $1,000,000 Step by Step Solution
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