Accounting Question: ACCT 221

barkersbaseball

Main

Home >Homework Answsers >Business & Finance homework help >Accounting homework help

Problem 16-3A

On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.

Common Stock	Shares	Cost
Carlene Co.	2,000	$60,000
Riverdale Co.	5,000	45,000
Raczynski Co.	1,500	30,000

On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the following transactions occurred.

July 1		Received $1 per share semiannual cash dividend on Riverdale Co. common stock.
Aug. 1		Received $0.50 per share cash dividend on Carlene Co. common stock.
Sept. 1		Sold 1,500 shares of Riverdale Co. common stock for cash at $8 per share, less brokerage fees of $300.
Oct. 1		Sold 800 shares of Carlene Co. common stock for cash at $33 per share, less brokerage fees of $500.
Nov. 1		Received $1 per share cash dividend on Raczynski Co. common stock.
Dec. 15		Received $0.50 per share cash dividend on Carlene Co. common stock.
Dec. 31		Received $1 per share semiannual cash dividend on Riverdale Co. common stock.

At December 31, the fair values per share of the common stocks were: Carlene Co. $32, Riverdale Co. $8, and Raczynski Co. $18.

(a)

Journalize the 2013 transactions and post to the account Stock Investments. (Use the T-account form.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
Aug. 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
Sept. 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
Oct. 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
Nov. 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
Dec. 15	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
Dec. 31	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]