Show the balance sheet presentation of the investments at 2022. These investments should be classified as long-term.
On December 31, 2021, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long-term investments. Common Stock Shares c Co. 1,060 D Co. 5,290 E Co. Cost $54,060 37.030 25,956 1,236 On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the Investees. In 2022, the following transactions occurred. July 1 Aug. 1 Received $2.00 per share semiannual cash dividend on D Co.common stock. Received $0.50 per share cash dividend on Co.common stock. Sold 1,060 shares of D Co.common stock for cash at $10 per share. Sold 328 shares of C Co.common stock for cash at $52 per share. Sept. 1 Oct. 1 On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2022, the following transactions occurred. July Aug. 1 Sept. 1 Oct. 1 Received $2.00 per share semiannual cash dividend on D Co.common stock. Received $0.50 per share cash dividend on C Co.common stock. Sold 1,060 shares of D Co. common stock for cash at $10 per share. Sold 328 shares of C Co.common stock for cash at $52 per share. Received $1 per share cash dividend on E Co.common stock. Received $0.50 per share cash dividend on C Co.common stock. 31 Received $2.20 per share semiannual cash dividend on D Co.common stock. 1 Nov. 1 Dec. 15 At December 31, the fair values per share of the common stocks were C Co. $50, D Co. $6.80, and E Co. $25. These investments should be classified as long-term Date Account Titles and Explanation Debit Credit July 1 Cash 10580 Dividend Revenue 10580 Aug. 1 Cash 530 Dividend Revenue 530 Sept. 1 Cash 10600 Gain on Sale of Stock Investments 3180 Stock Investments 7420 Oct. 1 Cash 17056 ** Oct. 1 Cash 17056 Gain on Sale of Stock Investments 328 Stock Investments 16728 Nov. 1 Cash 1236 Dividend Revenue 1236 Dec. 15 Cash 366 Dividend Revenue 366 Dec. 31 Cash 9306 Dividend Revenue 9306 Your answer is correct. Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Wildhorse has less than a 20% ownership interest in all these common stocks (C Co., D Co., and E Co.). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Fair Value Adjustment-Stock 3366 Unrealized Gain or Loss-Income 3366 e Textbook and Media List of Accounts Attempts: 1 of 3 used Your answer is partially correct. Show the balance sheet presentation of the investments at 2022. These investments should be classified as long-term. Wildhorse Associates (Partial) Balance Sheet December 31, 2022 Investments Stock Investments 92898 eTextbook and Media List of Accounts
