Question
Windsor, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 980 shares @ $ 14 each $ 13,720 Rogers Company 860
Windsor, Inc. had the following equity investment portfolio at January 1, 2017.
Evers Company | 980 shares @ $ 14 each | $ 13,720 | |||
Rogers Company | 860 shares @ $ 22 each | 18,920 | |||
Chance Company | 480 shares @ $ 9 each | 4,320 | |||
Equity investments @ cost | 36,960 | ||||
Fair value adjustment | ( 7,840 | ) | |||
Equity investments @ fair value | $ 29,120 |
During 2017, the following transactions took place.
1. | On March 1, Rogers Company paid a $ 2 per share dividend. | |
2. | On April 30, Windsor, Inc. sold 310 shares of Chance Company for $ 11 per share. | |
3. | On May 15, Windsor, Inc. purchased 90 more shares of Evers Company stock at $ 15 per share. | |
4. | At December 31, 2017, the stocks had the following price per share values: Evers $ 16, Rogers $ 21, and Chance $ 8. |
During 2018, the following transactions took place.
5. | On February 1, Windsor, Inc. sold the remaining Chance shares for $ 8 per share. | |
6. | On March 1, Rogers Company paid a $ 2 per share dividend. | |
7. | On December 21, Evers Company declared a cash dividend of $ 3 per share to be paid in the next month. | |
8. | At December 31, 2018, the stocks had the following price per share values: Evers $ 18 and Rogers $ 23 |
Prepare journal entries for each of the above transactions. (Credit account titles are automatically indented when 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.)
Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2017 and 2018.
List of Accounts
- Accumulated Other Comprehensive Loss
- Allowance for Loss on Debt Investment
- Bonds Payable
- Cash
- Call Option
- Common Stock
- Cost of Goods Sold
- Debt Investments
- Dividend Revenue
- Dividend Receivable
- Equity Investments
- Fair Value Adjustment
- Futures Contract
- Gain on Sale of Investments
- Gain on Settlement of Call Option
- Gain on Settlement of Put Option
- Interest Expense
- Interest Receivable
- Interest Revenue
- Inventory
- Investment Income
- Loss on Impairment
- Loss on Sale of Investments
- Loss on Settlement of Call Option
- Loss on Settlement of Put Option
- No Entry
- Notes Payable
- Paid-in Capital in Excess of Par - Common Stock
- Put Option
- Recovery of Loss from Impairment
- Retained Earnings
- Sales Revenue
- Swap Contract
- Unrealized Holding Gain or Loss - Equity
- Unrealized Holding Gain or Loss - Income
*PLEASE SHOW WORK*
No. Account Titles and Explanation Debit Credit Windsor, Inc. Balance Sheet (Partial) December 31, 2017 December 31, 2018Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started