Cheyenne Corp. has the following securities in its portfolio of equity securities on December 31, 2021: Cost Fair Value 5,000 shares of Thomas Corp., Common $152,000 $140,000 10,000 shares of Gant, Common 182,000 190,100 $334,000 $330,100 All of the securities had been purchased in 2021. In 2022, Cheyenne Corp. completed the following securities transactions: March 1 Sold 5,000 shares of Thomas Corp., Common @ $31 less fees of $1,500. April 1 Bought 610 shares of Werth Stores, Common @ $47 plus fees of $500. The Cheyenne Corp. portfolio of equity securities appeared as follows on December 31, 2022: Cost Fair Value 10,000 shares of Gant, Common $182,000 $193,000 610 shares of Werth Stores, Common 29,170 27,120 $211,170 $220,120 Prepare the general journal entry for Cheyenne Corp. for the 2021 adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) Date Account Titles and Explanation Debit Credit 12-31-21 unrealized holding gain or loss 3900 fair value adjustment 3900 Screenshots are parts b and c. (d) Prepare the general journal entry for Cheyenne Corp. for the 2022 adjusting entry

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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Question

Cheyenne Corp. has the following securities in its portfolio of equity securities on December 31, 2021:

	Cost	Fair Value
5,000 shares of Thomas Corp., Common	$152,000	$140,000
10,000 shares of Gant, Common	182,000	190,100
	$334,000	$330,100

All of the securities had been purchased in 2021. In 2022, Cheyenne Corp. completed the following securities transactions:

March 1		Sold 5,000 shares of Thomas Corp., Common @ $31 less fees of $1,500.
April 1		Bought 610 shares of Werth Stores, Common @ $47 plus fees of $500.

The Cheyenne Corp. portfolio of equity securities appeared as follows on December 31, 2022:

	Cost	Fair Value
10,000 shares of Gant, Common	$182,000	$193,000
610 shares of Werth Stores, Common	29,170	27,120
	$211,170	$220,120

Prepare the general journal entry for Cheyenne Corp. for the 2021 adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a)

Date	Account Titles and Explanation	Debit	Credit
12-31-21	unrealized holding gain or loss	3900
	fair value adjustment		3900

Screenshots are parts b and c.

(d) Prepare the general journal entry for Cheyenne Corp. for the 2022 adjusting entry.

(b)
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Prepare the general journal entry for Cheyenne Corp. for the sale of the Thomas Corp. stock. (Credit account titles are
automatically indented when 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
Debit
Credit
3-1-22
Cash
153500
Gain on Sale of Investments
1500
Equity Investments
152000
Attempts: 1 of 1 used

(c)
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Prepare the general journal entry for Cheyenne Corp. for the purchase of the Werth Stores' stock. (Credit account titles are
automatically indented when 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
Debit
Credit
4-1-22
Equity Investments
29170
Cash
29170
Attempts: 1 of 1 used
(d)

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