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Question 4 of 4 - 1 2 5 View Policies Current Attempt in Progress Sarasota Corp. is a medium - sized corporation specializing in quarrying
Question of View Policies Current Attempt in Progress Sarasota Corp. is a mediumsized corporation specializing in quarrying stone for building construction. The cornpany has long dominated the market, at one time achieving a market penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Sarasota has had a policy of investing idle cash in equity securities In particular, Sarasota has made periodic investments in the company's principal vendor of mining equipment, Norton Industries. Although the firm currently owns of the outstanding common stock of Norton Industries, Sarasota does not have significant influence over the operations of Norton Industries. Cheryl Thomas has recently joined Sarasota as assistant controller, and her first assignment is to prepare the December yearend adjusting entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Thornas has gathered the following information about Sarasota's pertinent accounts. Sarasota has equity securities related to Delaney Motors and Patrick Electric. During Sarasota purchased shares of Delaney Motors for $; these shares currently have a fair value of $ Sarasota' investment in Patrick Electric has not been profitable; the company acquired shares of Patrick in April at $ per share, a purchase that currently has a value of $ Prior to Sarasota invested $ in Norton Industries and has not changed its holdings this year. This investrnent. in Norton Industries was valued at $ on December Sarasota ownership of Norton Industries has a current fair value of $ on December a Prepare the appropriate adjusting entries for Sarasota as of Decernber to reflect the application of the "fair value" rule for the securities described above. List debit entry before creditentry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Enty "for the account tites and enter O for the amounts. Account Titles and Explanation Unrealized Holding Gain or Los Income Fair Value Adjustment eTextbookand Media List of Accounts Debit Credit Credit
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View Policies
Current Attempt in Progress
Sarasota Corp. is a mediumsized corporation specializing in quarrying stone for building construction. The cornpany has long dominated the market, at one time achieving a market penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Sarasota has had a policy of investing idle cash in equity securities In particular, Sarasota has made periodic investments in the company's principal vendor of mining equipment, Norton Industries. Although the firm currently owns of the outstanding common stock of Norton Industries, Sarasota does not have significant influence over the operations of Norton Industries.
Cheryl Thomas has recently joined Sarasota as assistant controller, and her first assignment is to prepare the December yearend adjusting entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Thornas has gathered the following information about Sarasota's pertinent accounts.
Sarasota has equity securities related to Delaney Motors and Patrick Electric. During Sarasota purchased shares of Delaney Motors for $; these shares currently have a fair value of $ Sarasota' investment in Patrick Electric has not been profitable; the company acquired shares of Patrick in April at $ per share, a purchase that currently has a value of $
Prior to Sarasota invested $ in Norton Industries and has not changed its holdings this year. This investrnent. in Norton Industries was valued at $ on December Sarasota ownership of Norton Industries has a current fair value of $ on December
a
Prepare the appropriate adjusting entries for Sarasota as of Decernber to reflect the application of the "fair value" rule for the securities described above. List debit entry before creditentry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Enty "for the account tites and enter O for the amounts.
Account Titles and Explanation
Unrealized Holding Gain or Los Income
Fair Value Adjustment
eTextbookand Media
List of Accounts
Debit
Credit
Credit
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