Current Attempt in ProgressPharoah Corporation sells 210 shares of common stock being held as an investment. The shares were acquired six months ago at acost of $50 a share. Pharoah sold the shares for $56 a share. The entry to record the sale isCashGain on Sale of StockInvestmentsStock InvestmentsCashStock Investments117601260105001176011760Cash10500Loss on Sale of Stock1260InvestmentsStock Investments11760Stock Investments11760Cash11760

Gain on sales of investment = (Sale price - purchase cost)* No of share = 210*(12-6) = $1260

Answered: Current Attempt in Progress Pharoah…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (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.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
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