On December 31, 2021, the end of its first year of operations, Ivanhoe Associates owned the following securities that are held as long-term investments.Common StockC Co.D Co.E Co.(a)JulyAug.Sept. 1Oct.1Nov. 1Dec.Shares15980On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over theinvestees. In 2022, the following transactions occurred.315,4201,2971 Received $2.00 per share semiannual cash dividend on D Co. common stock.1 Received $0.50 per share cash dividend on C Co. common stock.Sold 1,050 shares of D Co. common stock for cash at $10 per share.Sold 300 shares of C Co. common stock for cash at $50 per share.Received $1 per share cash dividend on E Co. common stock.Received $0.50 per share cash dividend on C Co. common stockReceived $2.20 per share semiannual cash dividend on D Co. common stockCost$44,10039,56625,940At December 31, the fair values per share of the common stocks were C Co. $44, D Co $7.10, and E Co $24. These investimentsshould be classified as long-term.Journalize the 2022 transactions. (Record journal entries in the order presented in the problem, Credit account titles are automatically

Journal Entries Date Particulars Debit ($) Credit ($) Jul-01 Cash 10840 Dividend…

Answered: Journalize the 2022 transactions.…

Journalize the 2022 transactions. (Record journal entries in the order presented in the problem. Credit account tities are automatically

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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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 C Co. D Co. July Aug. Sept. Oct. Dec. E Co. 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. 1 1 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 1,020 shares of D Co. common stock for cash at $8 per share. Sold 310 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. Received $2.00 per share semiannual cash dividend on D Co. common stock. 1 Nov. 1 Shares 1,050 5,090 1,199 15 Cost 31 $50,400 38,175 25,179 At December 31, the fair values per share of the common…
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Juliana Company has the following investments as of December 31, 2025: Investments in common stock of Beam Company Investment in debt securities of NineSquare Company In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2025. Juliana's stock investments does not result in significant influence on the operations of Beam Company. Juliana's debt investment is considered held- to-maturity. At December 31, 2026, the shares in Beam Company are valued at $1,200,000; the debt investment securities of NineSquare are valued at $2,600,000. Assume that the debt investments are considered impaired. (a) Your Answer ✓ Your answer is correct. (b) Prepare the journal entries to record the impairment of the debt securities at December 31, 2026. (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 o for the amounts. List…
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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $460,000. Sep. 1 Acquired $990,000 of American Instruments' common stock. Sep. 30 Received a $13,800 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $491,000. Nov. 1 Purchased $1,440,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 934,000 M&D Corporation common stock $…
Rolling Hills Productions held investments in equity securities (in Elban Company)with a fair value of $75,000 at December 31, 2018. These investments cost Rolling HillsProductions $68,000 on January 1, 2018. What is the appropriate amount for Rolling HillsProductions to report for these investments on its December 31, 2018, balance sheet?(Assume that Rolling Hills has insignificant influence over Elban Company.)a. $68,000b. A $7,000 gainc. $75,000d. Cannot be determined from the data given
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transforners Corporation common stock for $560,000. Sep. 1 Acquired $1,140,000 of American Instruments' common stock. Sep. 30 Received a $16, 800 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $601,000. Nov. 1 Purchased $1,560,000 of yaD Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: $1,074,000 $1,637,000 American Instruments common stock MAD Corporation comnon stock Required: 1. Prepare the appropriate journal…
On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity securities did not qualify as a financial asset held for trading, and the entity made an irrevocable election to present unrealized gain and loss in other comprehensive income. The entity also paid P50,000 as commission to the broker. The entry to record this purchase would include a.A debit to commission expense, P50,000 b.A debit to Financial asset - FVOCI, P5,000,000 c.A debit to Financial asset - FVOCI, P4,950,000 d.A debit to Financial asset - FVOCI, P5,050,000
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