PART B

Problem 12-3A (Part Level Submission) On December 31, 2015, Turnball Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control o Gehring Co. Wooderson Co. Kitselton Co. 2,160 4,980 1,400 $69,120 44,820 26,600 On December 31, 2015, the total fair value of the securities was equal to its cost. In 2016, the following transactions occurred. July 1 Received $2 per share semiannual cash dividend on Wooderson Co. common stock. Aug. 1 Received $0.50 per share cash dividend on Gehring Co. common stock Sept. Sold 1,494 shares of Wooderson Co. common stock for cash at $8 per share. Oct. 1 Sold 864 shares of Gehring Co. common stock for cash at $35 per share. Nov. 1 Received $2 per share cash dividend on Kitselton Co. common stock. Dec. 15 Received $0.50 per share cash dividend on Gehring Co. common stock Dec. 31 Received $2 per share semiannual cash dividend on Wooderson Co. common stock. At December 31, the fair values per share of the common stocks were: Gehring Co. $34, Wooderson Co. $8, and Kitselton Co. $17 Your answer is correct. Journalize the 2016 transactions and post to the account Stock Investments. (Use the T-account form.) (Credit account titles are automatically indented w "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July SN 3960 ividend Revenuel 9960 Aug. Cash 080 ividend Revenuel T1080 Sept. cash 1952 s on S ale of Stock Investment s 1494 tock i 3446 Oct. Cash 0240 ' ale 127648 Nov. ashl 80 ' ividend Revenu Dec. 1 ividend Revenuel (b) Prepare the adjusting entry at December 31, 2016, to show the securities at fair value. The stock should be classified as available-for-sale securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO SIMILAR PROBLEM Attempts: 0 of 5 used