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Pam invested in the following equity securities, all of which she purchased on 12-14-18. For each investment, Pam owns less than 5% of the investees
- Pam invested in the following equity securities, all of which she purchased on 12-14-18. For each investment, Pam owns less than 5% of the investee’s outstanding common stock.
Fair value* | Fair value* | Fair value* | |||
Name of Company | Number of shares | Cost per share | 12/31/18 | 12/31/19 | 12/31/20 |
G&P | 1,000 | $10 | $12 | $13 | $16 |
MartWal | 2,000 | $14 | $15 | $11 | $17 |
Worsham | 1,500 | $20 | $19 | $24 | $23 |
Hoosier | 2,500 | $40 | $50 | $65 | $51 |
* per share amounts
The following transactions related to Pam’s investments occurred during 2019:
- On 05-10-19, Pam received a $0.20 cash dividend on each share of the Worsham stock.
- On 08-20-20, Pam sold one-third of the Worsham stock for $30 per share.
Pam closes her books every December 31. Prepare the entries Pam should make on:
- 12-14-18.
- 12-31-18.
- 05-10-19.
- 12-31-19.
- 08-20-20.
- 12-31-20.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To prepare the entries for each of the given dates we need to account for the initial investment changes in fair value dividends received and the sale ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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