Record these transactions on page 10: Year 1 Jan. 22 Purchased 22,000 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission 8 Mar. Sep. Received a cash dividend of $0.22 per share on Sankal Inc. stock. A cash dividend of $0.25 per share was received on the Sankal stock. Sold 3,000 shares of Sankal Inc. stock at $16 per share less a brokerage commission of $75. Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $25 per share. Use the valuation allowance for available-for-sale investments account in making the 17 31 Dec. adjustment Record these transactions on page 11: Year 2 Jan 10 Mar. Sep 10 12 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 Ine, stock outstanding Received a cash dividend of $0.30 per share on Sankal Inc. stock. Received a cash dividend of $0.25 per share plus an extra dividend of $0.05 per share on Sankal Inc. stock. Received 557,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden ine. Sankal Inc. is classified as an available for sale investment and is adjusted to a far value of 522 per share. Use the valuation allowance for available for sale investments account in making the adjustment for the decrease in fair value from $25 to $22 per share. Dec. 31 Dec 31 Required: 1. Jouma teenies to record these transactions. Refer to the information and the Chart of Accounts proved for the word of the answer choices for text entries 2. Prepare me vestment related asset and stockhors equity balance sheet presentation Forte Inc. on December L arsum that means Eames balance on December 31, Year 2 0 00. Refer to the Chart of Accounts and Amount Des provided for the exact wording of the answer choices for textes Lessor automatically per r ure For those bones which you must en subtracted or negative numbers use a m asin Forte Inc. Balance Sheet (selected items) December 31, Year 2 1 Current assets: 6 Investments: Stockholders' equity: REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 621 Income of Imboden Inc. 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Sankal Inc. 163 Investment in Imboden Inc. Stock 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Imboden Inc. 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable EQUITY 311 Common Stock 312 Paid-in Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Pald-in Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Pald-in Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Avatable-for-Sale Investments 351 Cash Dividends 352 Stock Dividends 390 Income Summary
