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PR 15-3A Stock investment transactions, equity method and available-for-sale OBJ. 3, 4 securities Forte Inc. produces and sells theater set designs and costumes. The company

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PR 15-3A Stock investment transactions, equity method and available-for-sale OBJ. 3, 4 securities Forte Inc. produces and sells theater set designs and costumes. The company began op- erations on January 1, 2016. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31: 2016 Jan. 22. Purchased 22,000 shares of Sankal Inc, as an available-for-sale security at $18 per share, including the brokerage commission. Mar. 8. Received a cash dividend of $0.22 per share on Sankal Inc. stock. Sept. 8. A cash dividend of $0.25 per share was received on the Sankal stock. Oct. 17. Sold 3,000 shares of Sankal Inc. stock at $16 per share, less a brokerage commission of $75. Dec. 31. ankal Inc. is classified as an available for sale investment and is adjusted to a fair value of $25 per share. 2017 Jan. 10. Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding Mar. 10. Received a cash dividend of $0.30 per share on Sankal Inc. stock. Sept. 12. Received a cash dividend of $0.25 per share plus an extra dividend of $0.05 per share on Sankal Inc. stock. Dec. 31. Received $57,600 of cash dividends on Imboden Inc, stock. Imboden Inc. reported net income of $450,000 in 2017. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. 31. Sankal Inc is classified as an available for sale investment and is adjusted to a fair value of $22 per share. Instructions 1. Journalize the entries to record these transactions 2. Prepare the investment-related asset and stockholders' equity balance sheet presenta tion for Forte Inc. on December 31, 2017, assuming the retained Earnings balance on December 31, 2017, is $389,000

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