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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

  1. 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:

  1. 12-14-18.
  2. 12-31-18.
  3. 05-10-19.
  4. 12-31-19.
  5. 08-20-20.
  6. 12-31-20.

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