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(b) Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Sunland has less than a 20% ownership interest in all these common stocks (C Co., D Co., and E Co.). (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.) Date Account Titles and Explanation Dec. 31 Debit C

(b) Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Sunland has less than a 20% ownership interest in all these common stocks (C Co., D Co., and E Co.). (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.) Date Account Titles and Explanation Dec. 31 Debit C

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2021, the end of its first year of operations, Sunland Associates owned the following securities that are held as long- term investments. Common Stock C Co. D Co. E Co. Dec. Nov. 1 Shares 15 920 31 5,300 1,316 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. Cost $46,000 July 1 Received $2.00 per share semiannual cash dividend on D Co. common stock. Aug. 1 Received $0.50 per share cash dividend on C Co. common stock. Sept. 1 Sold 960 shares of D Co. common stock for cash at $10 per share. Oct. 1 Sold 330 shares of C Co. common stock for cash at $56 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 $2.30 per share semiannual cash dividend on D Co. common stock. 35,510 28,952 At December 31, the fair values per share of the common stocks were C Co. $49, D Co. $6.50, and E Co. $26. These investments should be classified as long-term.
Transcribed Image Text:On December 31, 2021, the end of its first year of operations, Sunland Associates owned the following securities that are held as long- term investments. Common Stock C Co. D Co. E Co. Dec. Nov. 1 Shares 15 920 31 5,300 1,316 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. Cost $46,000 July 1 Received $2.00 per share semiannual cash dividend on D Co. common stock. Aug. 1 Received $0.50 per share cash dividend on C Co. common stock. Sept. 1 Sold 960 shares of D Co. common stock for cash at $10 per share. Oct. 1 Sold 330 shares of C Co. common stock for cash at $56 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 $2.30 per share semiannual cash dividend on D Co. common stock. 35,510 28,952 At December 31, the fair values per share of the common stocks were C Co. $49, D Co. $6.50, and E Co. $26. These investments should be classified as long-term.
(b) Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Sunland has less than a 20% ownership interest in all these common stocks (C Co., D Co., and E Co.). (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.) Date Account Titles and Explanation Dec. 31 Debit с
Transcribed Image Text:(b) Prepare the adjusting entry at December 31, 2022, to show the securities at fair value. Sunland has less than a 20% ownership interest in all these common stocks (C Co., D Co., and E Co.). (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.) Date Account Titles and Explanation Dec. 31 Debit с
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