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Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare joumal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments July 22 Sept. 5 Sept. 27 Oct 3 Oct. 30 Dec 17 Dec. 31 Date 7/22 9/5 9/27 10/3 10/30 12/17 12/31 Purchased 1,600 shares of Hunt Corporation at $30 per share. Received a $2 cash dividend for each share of Hunt Corporation. Purchased 3,400 shares of HCA at $34 per share. Sold 1,600 shares of Hunt at $25 per share. Purchased 1,200 shares of Black & Decker at $50 per share. Received a $3 cash dividend for each share of Black & Decker. Fair value of the short-term stock investments is $180,000. General Joumal Debit Credit

Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare joumal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments July 22 Sept. 5 Sept. 27 Oct 3 Oct. 30 Dec 17 Dec. 31 Date 7/22 9/5 9/27 10/3 10/30 12/17 12/31 Purchased 1,600 shares of Hunt Corporation at $30 per share. Received a $2 cash dividend for each share of Hunt Corporation. Purchased 3,400 shares of HCA at $34 per share. Sold 1,600 shares of Hunt at $25 per share. Purchased 1,200 shares of Black & Decker at $50 per share. Received a $3 cash dividend for each share of Black & Decker. Fair value of the short-term stock investments is $180,000. General Joumal Debit Credit

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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Cartsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare joumal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Sept. 5 Sept. 27 Oct 3 Oct. 30 Dec 17 Dec. 31 Date 7/22 9/5 9/27 10/3 10/30 12/17 12/31 Purchased 1,600 shares of Hunt Corporation at $30 per share. Received a $2 cash dividend for each share of Hunt Corporation. Purchased 3,400 shares of HCA at $34 per share. Sold 1,600 shares of Hunt at $25 per share. Purchased 1,200 shares of Black & Decker at $50 per share. Received a $3 cash dividend for each share of Black & Decker. Fair value of the short-term stock investments is $180,000. General Joumal Debit Credit
Transcribed Image Text:Cartsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare joumal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Sept. 5 Sept. 27 Oct 3 Oct. 30 Dec 17 Dec. 31 Date 7/22 9/5 9/27 10/3 10/30 12/17 12/31 Purchased 1,600 shares of Hunt Corporation at $30 per share. Received a $2 cash dividend for each share of Hunt Corporation. Purchased 3,400 shares of HCA at $34 per share. Sold 1,600 shares of Hunt at $25 per share. Purchased 1,200 shares of Black & Decker at $50 per share. Received a $3 cash dividend for each share of Black & Decker. Fair value of the short-term stock investments is $180,000. General Joumal Debit Credit
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