Culver Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method.Investments Cost Fair Value1,500 shares of Gordon, Inc., Common $ 67,700 $ 63,0005,000 shares of Wallace Corp., Common 164,700 159,600400 shares of Martin, Inc., Preferred 59,300 61,100 $ 291,700 $ 283,700All of the securities were purchased in 2020.In 2021, Culver completed the following securities transactions.March 1 Sold the 1,500 shares of Gordon, Inc., Common, @ $ 45 less fees of $ 1,200.April 1 Bought 700 shares of Earnhart Corp., Common, @ $ 75 plus fees of $ 1,300.Culver’s portfolio of equity securities appeared as follows on December 31, 2021.Investments Cost Fair Value5,000 shares of Wallace Corp., Common $ 164,700 $ 159,600700 shares of Earnhart Corp., Common 53,800 50,100400 shares of Martin, Inc., Preferred 59,300 57,500 $ 277,800 $ 267,200Prepare the general journal entries for Culver Company for:(a) The 2020 adjusting entry.(b) The sale of the Gordon stock.(c) The purchase of the Earnhart stock.(d) The 2021 adjusting entry for the trading portfolio.(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.)No.Account Titles and ExplanationDebitCredit(a) (b) (c) (d)

In Investment a/c if market value >cost then it is appreciation it will go unrealised…

Answered: Culver Company has the following…

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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Culver Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method.

Investments	Cost	Fair Value
1,500 shares of Gordon, Inc., Common	$ 67,700	$ 63,000
5,000 shares of Wallace Corp., Common	164,700	159,600
400 shares of Martin, Inc., Preferred	59,300	61,100
	$ 291,700	$ 283,700

All of the securities were purchased in 2020.
In 2021, Culver completed the following securities transactions.

March 1		Sold the 1,500 shares of Gordon, Inc., Common, @ $ 45 less fees of $ 1,200.
April 1		Bought 700 shares of Earnhart Corp., Common, @ $ 75 plus fees of $ 1,300.

Culver’s portfolio of equity securities appeared as follows on December 31, 2021.

Investments	Cost	Fair Value
5,000 shares of Wallace Corp., Common	$ 164,700	$ 159,600
700 shares of Earnhart Corp., Common	53,800	50,100
400 shares of Martin, Inc., Preferred	59,300	57,500
	$ 277,800	$ 267,200

Prepare the general journal entries for Culver Company for:

(a)		The 2020 adjusting entry.
(b)		The sale of the Gordon stock.
(c)		The purchase of the Earnhart stock.
(d)		The 2021 adjusting entry for the trading portfolio.

(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.)

No.	Account Titles and Explanation	Debit	Credit
(a)

(b)


(c)

(d)

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