P17-11 Castleman Holdings, Inc. had the
following available-for-sale investment portfolio at January 1, 2014.
1,000 shares of Evers Company at $15.00 per share $15,000
900 shares of Rogers Company at $20.00 per share $18,000
500 shares of Chance Company at $9.00 per share $4,500
Available-for-sale
securities at cost: $37,500
Securities
fair value adjustment-Available-for-sale - Credit balance ($7,500)
Available-for-sale
securities at fair value: $30,000
During 2014, the following transactions took place:
1. On March 1, Rogers Company paid a $2.00 per share dividend.
2. On April 30, Castleman Holdings, Inc. Sold 300 shares of Chance Company for $11.00 per share
3. On May 15, Castleman Holding, Inc. Purchased 100 more shares of Evers Co. stock at $16.00 per share
4. At December 31, 2014, the stocks had the following price per share values:
2. On April 30, Castleman Holdings, Inc. Sold 300 shares of Chance Company for $11.00 per share
3. On May 15, Castleman Holding, Inc. Purchased 100 more shares of Evers Co. stock at $16.00 per share
4. At December 31, 2014, the stocks had the following price per share values:
Evers Company $17.00
Rogers Company $19.00
Chance Company $8.00
During 2015 the following transactions took place:
5. On February 1, Castleman Holding, 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, 2015, the stocks had the following price per share values:
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, 2015, the stocks had the following price per share values:
Evers
Company $19.00
Rogers
Company $21.00
Instructions
(a) Prepare journal entries for each of the above transactions.
(b) Prepare a
partial balance sheet showing the Investments account at December 31, 2014, and
2015.
TUTORIAL PREVIEW
(a) Prepare journal entries for each of the above transactions.
|
1
|
Mar 1,
14
|
Cash
|
1,800
|
|
|
Dividend
Revenue ($2.00 × 900 shares)
|
|
1,800
|
