P17-11 (Equity InvestmentsAvailable-for-Sale) Castleman Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2014.

1,000

shares of Evers Company at

$15.00

per share

$15,000

900

shares of Rogers Company at

$20.00

per share

$18,000

500

shares of Chance Company at

$9.00

per share

$4,500

Available-for-sale securities at cost:

$37,500

Securities fair value adjustment-Available-for-sale - Credit balance

($7,500)

Available-for-sale securities at fair value:

$30,000

During 2014, the following transactions took place:

1. On March 1, Rogers Company paid a

$2.00

per share dividend.

2. On April 30, Castleman Holdings, Inc. sold

300

shares of Chance Company

for

$11.00

per share

3. On May 15, Castleman Holding, Inc. purchased

100

more shares of Evers Co.

stock at

$16.00

per share

4. At December 31, 2014, the stocks had the following price per share values:

Evers Company

$17.00

Rogers Company

$19.00

Chance Company

$8.00

During 2015 the following transactions took place:

5. On February 1, Castleman Holding, Inc. sold the remaining Chance shares for

$8

per share.

6. On March 1, Rogers Company paid a

$2

per share dividend.

7. On December 21, Evers Company declared a cash dividend of

$3

per share to be

paid in the next month.

8. At December 31, 2015, the stocks had the following price per share values:

Evers Company

$19.00

Rogers Company

$21.00

Instructions:

(a) Prepare journal entries for each of the above transactions.

1

Mar 1, 14

Account Title

Amount

Dividend Revenue

Amount

2

Apr 30, 14

Account Title

Amount

Account Title

Amount

Account Title

Amount

3

May 15, 14

Account Title

Amount

Account Title

Amount

4

Dec 31, 14

Account Title

Amount

Account Title

Amount

Security

Cost

Fair Value

Unrealized Gain (Loss)

Evers Company

Formula

Calculation as desired

Formula

Formula

Rogers Company

Formula

Calculation as desired

Formula

Formula

Chance Company

Formula

Calculation as desired

Formula

Formula

Total of Portfolio

Formula

Formula

Formula

Previous securities fair value adjustment bal.Cr.

Amount

Securities fair value adjustmentDr.

Formula

5

Feb 1, 14

Account Title

Amount

Account Title

Amount

Account Title

Amount

6

Mar 1, 14

Account Title

Amount

Account Title

Amount

7

Dec 21, 14

Account Title

Amount

Account Title

Amount

8

Dec 31, 14

Account Title

Amount

Account Title

Amount

Security

Cost

Fair Value

Unrealized Gain (Loss)

Evers Company

Formula

Calculation as desired

Formula

Formula

Rogers Company

Formula

Calculation as desired

Formula

Formula

Total of Portfolio

Formula

Formula

Formula

Previous securities fair value adjustment bal.Cr.

Amount

Securities fair value adjustmentDr.

Formula

(b) Prepare a partial balance sheet showing the Investments account at December 31, 2014, and 2015.

Partial Balance Sheet as of:

December 31, 2014

December 31, 2015

Current Assets - Dividends Receivable

Amount

Amount

Investments:

Available-for-sale securities, at fair value

Amount

Amount

Stockholders' equity:

Accumulated other comprehensive gain

Amount

Amount