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Cullumber, Inc. had the following equity investment portfolio at January 1, 2020. 970 shares @ $15 each $14,550 16,200 900 shares @ $18 each 480 shares @ $8 each 3,840 34,590 (7.220) Evers Company Rogers Company Chance Company Equity investments@cost Fair value adjustment Equity investments @fair value During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. On April 30, Cullumber, Inc. sold 310 shares of Chance Company for $10 per share. On May 15, Cullumber, Inc. purchased 110 more shares of Evers Company stock at $16 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $17, and Chance $7. 2 3. During 2021, the following transactions took place. 5. 6. 7. $27,370 8. On February 1, Cullumber, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2021, the stocks had the following price per share values: Evers $19 and Rogers $19. (b) - Your answer is partially correct. Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021. Current Assets Dividend Receivable Investments Equity Investments Cullumber, Inc. Balance Sheet (Partial) December 31, 2020 0 December 31, 2021 3240

Cullumber, Inc. had the following equity investment portfolio at January 1, 2020. 970 shares @ $15 each $14,550 16,200 900 shares @ $18 each 480 shares @ $8 each 3,840 34,590 (7.220) Evers Company Rogers Company Chance Company Equity investments@cost Fair value adjustment Equity investments @fair value During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. On April 30, Cullumber, Inc. sold 310 shares of Chance Company for $10 per share. On May 15, Cullumber, Inc. purchased 110 more shares of Evers Company stock at $16 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $17, and Chance $7. 2 3. During 2021, the following transactions took place. 5. 6. 7. $27,370 8. On February 1, Cullumber, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2021, the stocks had the following price per share values: Evers $19 and Rogers $19. (b) - Your answer is partially correct. Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021. Current Assets Dividend Receivable Investments Equity Investments Cullumber, Inc. Balance Sheet (Partial) December 31, 2020 0 December 31, 2021 3240

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Prepare journal entries for each of the above transactions. (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.) No. Account Titles and Explanation (1) (2) (3) (4) (5) cash Dividend Revenue Cash Equity Investments Gain on Sale of Investments Equity Investments Cash Fair Value Adjustment Unrealized Holding Gain or Loss -Income Cash Loss on Sale of Investments Equity Investments Debit 1800 3100 1760 1190 170 Credit 1800 620 2480 1760 1360 (6) (7) (8) Cash Dividend Revenue Dividend Receivable Dividend Revenue Fair Value Adjustment Unrealized Holding Gain or Loss - Equity 1800 3240 1800 3240
Transcribed Image Text:Prepare journal entries for each of the above transactions. (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.) No. Account Titles and Explanation (1) (2) (3) (4) (5) cash Dividend Revenue Cash Equity Investments Gain on Sale of Investments Equity Investments Cash Fair Value Adjustment Unrealized Holding Gain or Loss -Income Cash Loss on Sale of Investments Equity Investments Debit 1800 3100 1760 1190 170 Credit 1800 620 2480 1760 1360 (6) (7) (8) Cash Dividend Revenue Dividend Receivable Dividend Revenue Fair Value Adjustment Unrealized Holding Gain or Loss - Equity 1800 3240 1800 3240
Cullumber, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company Rogers Company Chance Company Equity investments @cost Fair value adjustment Equity investments @fair value During 2020, the following transactions took place. 1. 2. 3. 4. 5. 970 shares @ $15 each 900 shares @ $18 each 480 shares @ $8 each During 2021, the following transactions took place. 6. 7. 8. $14,550 16,200 3,840 34,590 (7,220) $27,370 On March 1, Rogers Company paid a $2 per share dividend. On April 30, Cullumber, Inc. sold 310 shares of Chance Company for $10 per share. On May 15, Cullumber, Inc. purchased 110 more shares of Evers Company stock at $16 per share. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $17, and Chance $7. On February 1, Cullumber, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2021, the stocks had the following price per share values: Evers $19 and Rogers $19. (b) Your answer is partially correct. Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021. Current Assets Dividend Receivable Investments Equity Investments Cullumber, Inc. Balance Sheet (Partial) December 31, 2020 0 $ December 31, 2021 3240
Transcribed Image Text:Cullumber, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company Rogers Company Chance Company Equity investments @cost Fair value adjustment Equity investments @fair value During 2020, the following transactions took place. 1. 2. 3. 4. 5. 970 shares @ $15 each 900 shares @ $18 each 480 shares @ $8 each During 2021, the following transactions took place. 6. 7. 8. $14,550 16,200 3,840 34,590 (7,220) $27,370 On March 1, Rogers Company paid a $2 per share dividend. On April 30, Cullumber, Inc. sold 310 shares of Chance Company for $10 per share. On May 15, Cullumber, Inc. purchased 110 more shares of Evers Company stock at $16 per share. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $17, and Chance $7. On February 1, Cullumber, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2021, the stocks had the following price per share values: Evers $19 and Rogers $19. (b) Your answer is partially correct. Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021. Current Assets Dividend Receivable Investments Equity Investments Cullumber, Inc. Balance Sheet (Partial) December 31, 2020 0 $ December 31, 2021 3240
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