Question
The unadjusted trial balance of Riverbed Inc. at its year ended December 31, 2020 had the following investments that are held for trading: Carrying Amount
The unadjusted trial balance of Riverbed Inc. at its year ended December 31, 2020 had the following investments that are held for trading:
Carrying Amount | Fair Value | |||||
Kirkland Inc. $2 non-cumulative preferred shares (2,200 shares) | $ | 88,000 | $ | 87,990 | ||
Liskeard Ltd. common shares (500 shares) | 24,000 | 26,270 | ||||
$112,000 | $114,260 |
The following are transactions that occurred during 2021.
Mar. 1 | Received the quarterly cash dividend on the Kirkland Inc. preferred shares. | |
June 1 | Received the quarterly cash dividend on the Kirkland Inc. preferred shares. | |
June 10 | Sold 1,100 Kirkland Inc. preferred shares at $43.50 each. | |
July 15 | Received a cash dividend on the Liskeard Ltd. share of $2.50 per share. | |
Sept. 1 | Received the quarterly cash dividend on the Kirkland Inc. preferred shares. | |
Dec. 1 | Received the quarterly cash dividend on the Kirkland Inc. preferred shares. |
At December 31, 2021, the Kirkland Inc. preferred shares were trading at $43.00 and the Liskeard Ltd. common shares were trading at $49.68.
Record any necessary adjusting entry at December 31, 2020. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31, 2020 |
| ||
|
Record the above transactions for 2021 and any required adjusting entries at December 31, 2021. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Date
| Account Titles and Explanation
| Debit
| Credit
|
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