On December 31, 2012, Ogallala Associates owned the following securities, held as a long term investment The securities are not held for influence or control of the investee Common Stock Shares Cost Carlene Co 2,000 $60,000 Riverdale Co 5,200 41,600 Raczynski Co 1,620 34,020 On December 31, 2012, the total fair value of the securities was equal to its cost In 2013, the following transactions occurred July 1 Received $1 per share semiannual cash dividend on Riverdale Co common stock Aug 1 Received $0 4 per share cash dividend on Carlene Co common stock Sept 1 Sold 1,560 shares of Riverdale Co common stock for cash at $7 per share, less brokerage fees of $320 Oct 1 Sold 800 shares of Carlene Co common stock for cash at $32 per share, less brokerage fees of $470 Nov 1 Received $1 per share cash dividend on Raczynski Co common stock Dec 15 Received $0 4 per share cash dividend on Carlene Co common stock Dec 31 Received $1 per share semiannual cash dividend on Riverdale Co common stock At December 31, the fair values per share of the common stocks were Carlene Co $33, Riverdale Co $7, and Raczynski Co $19 (a) Journalize the 2012 transactions and post to the account Stock Investments (Use the T account form ) (b) Prepare the adjusting entry at December 31, 2012, to show the securities at fair value The stock should be classified as available for sale securities

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Posted on Nov 19, 2020

On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of

On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.

Common Stock	Shares	Cost
Carlene Co.	2,000	$60,000
Riverdale Co.	5,200	41,600
Raczynski Co.	1,620	34,020

On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the following transactions occurred.

July 1		Received $1 per share semiannual cash dividend on Riverdale Co. common stock.
Aug. 1		Received $0.4 per share cash dividend on Carlene Co. common stock.
Sept. 1		Sold 1,560 shares of Riverdale Co. common stock for cash at $7 per share, less brokerage fees of $320.
Oct. 1		Sold 800 shares of Carlene Co. common stock for cash at $32 per share, less brokerage fees of $470.
Nov. 1		Received $1 per share cash dividend on Raczynski Co. common stock.
Dec. 15		Received $0.4 per share cash dividend on Carlene Co. common stock.
Dec. 31		Received $1 per share semiannual cash dividend on Riverdale Co. common stock.

At December 31, the fair values per share of the common stocks were: Carlene Co. $33, Riverdale Co. $7, and Raczynski Co. $19.

(a) Journalize the 2012 transactions and post to the account Stock Investments. (Use the T-account form.)

(b) Prepare the adjusting entry at December 31, 2012, to show the securities at fair value. The stock should be classified as available-for-sale securities.