Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 17-10 (Part Level Submission) Stellar, Inc. had the following equity investment portfolio at January 1, 2020. 1,030 shares @ $14 each 890 shares @
Problem 17-10 (Part Level Submission) Stellar, Inc. had the following equity investment portfolio at January 1, 2020. 1,030 shares @ $14 each 890 shares @ $22 each 500 shares @ $9 each Evers Company Rogers Company Chance Company Equity investments @ cost Fair value adjustment Equity investments a fair value $14,420 19,580 4,500 38,500 (7,810) $30,690 During 2020, the following transactions took place. 1. 2. 3. On March 1, Rogers Company paid a $2 per share dividend. On April 30, Stellar, Inc. sold 320 shares of Chance Company for $11 per share. On May 15, Stellar, Inc. purchased 90 more shares of Evers Company stock at $15 per share. At December 31, 2020, the stocks had the following price per share values: Evers $16, Rogers $21, and Chance $8. 4. During 2021, the following transactions took place. 5. 6. 7. 8. On February 1, Stellar, Inc. sold the remaining Chance shares for $8 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2021, the stocks had the following price per share values: Evers $18 and Rogers $23. Prepare journal entries for each of the above transactions. (Credit account titles are automatically indented wh No. Account Titles and Explanation Debit Credit (1) TCash 1780 Dividend Revenue 1780 (211Cash 3520 Gain on Sale of Investn 640 Equity Investments 2880 (39Equity Investments 1350 Cash 1350 (4) TLoss on Sale of Investmen 8890 Unrealized Holding Gair 8890 (5) Cash 1440 Loss on Sale of Investmen 180 Equity Investments 1620 (6) TCash 1780 Dividend Revenue 1780 (7) Dividend Receivable 3360 Dividend Revenue 3360 (8) Fair Value Adjustment 4200 Unrealized Holding Gair 4200 4200 4200 Accumulated Other Comprehensive Income Accumulated Other Comprehensive Loss Current Assets Current Liabilities Dividend Receivable Equity Investments Intangible Assets Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities stment-related amounts to be reported at December 31, 2020 and 2021. Stellar, Inc. Balance Sheet (Partial) December 31, 2020 December 31, 2021 SHOW LIST OF ACCOUNTS LINK TO TEXT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started