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Investments in Equity Securities

Williams Corporation acquired the following equity securities during the year:

April 9: 200 shares of Southwestern Company common stock	$14,600
June 30: 500 shares of Montgomery Products common stock	14,500

Williamss investment in both of these companies is passive. On August 30, Williams received a dividend of $1.20 per share from the Southwestern Company, Williams also received a dividend of $1.80 per share from Montgomery Products on October 10. At December 31, the Southwestern stock has a market value of $75 per share, and the Montgomery stock has a market value of $25 per share.

Required:

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1. Prepare entries for Williamss journal to record these two investments and the receipt of the dividends. If an amount box does not require an entry, leave it blank.

Apr. 9	Allowance to Adjust Trading Securities to MarketGoodwillInvestment IncomeInvestment in Equity SecuritiesUnrealized Gain (Loss) on Trading Securities
	Allowance to Adjust Trading Securities to MarketCashGoodwillInvestment in Equity SecuritiesUnrealized Gain (Loss) on Trading Securities
June 30	Allowance to Adjust Trading Securities to MarketGoodwillInvestment IncomeInvestment in Equity SecuritiesUnrealized Gain (Loss) on Trading Securities
	Allowance to Adjust Trading Securities to MarketCashGoodwillInvestment in Equity SecuritiesUnrealized Gain (Loss) on Trading Securities
Aug. 30	Allowance to Adjust Trading Securities to MarketCashDividend IncomeGoodwillUnrealized Gain (Loss) on Trading Securities
	Allowance to Adjust Trading Securities to MarketDividend IncomeGoodwillInvestment IncomeUnrealized Gain (Loss) on Trading Securities
Oct. 10	Allowance to Adjust Trading Securities to MarketCashDividend IncomeGoodwillUnrealized Gain (Loss) on Trading Securities
	Allowance to Adjust Trading Securities to MarketDividend IncomeGoodwillInvestment IncomeUnrealized Gain (Loss) on Trading Securities

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2. Calculate the market value of Williamss short-term investment portfolio at December 31.

Market value of portfolio on December 31:
200 Southwestern shares	$fill in the blank f93f2df8403dfe9_1
500 Montgomery shares	fill in the blank f93f2df8403dfe9_2
Portfolio market value	$fill in the blank f93f2df8403dfe9_3

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3. Prepare the necessary adjusting entry at December 31. If an amount box does not require an entry, leave it blank.

Dec. 31	Allowance to Adjust Equity Securities to MarketGoodwillInvestment in Equity SecuritiesInvestment IncomeUnrealized Gain (Loss) on Equity Securities
	Allowance to Adjust Equity Securities to MarketGoodwillInvestment in Equity SecuritiesInvestment IncomeUnrealized Gain (Loss) on Equity Securities

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4. How would these securities be disclosed on the December 31 balance sheet? Assume that Williams expects to sell the investment in the next year.

Current assets:
Investments:
Allowance to adjust trading securities to marketAvailable-for-sale securities, at costEquity securities, at fair valueEquity securities, at marketUnrealized gain (loss) on equity securities	$- Select -