Debt investment transactions, available-for-sale valuation Rios Co. is a regional insurance company that began operations on January 1, 2021. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: 2021 Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding. May 1 Purchased securities of Holland, Inc. as a trading investment for $126,000. July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110 brokerage commission. July 31 Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell, Inc. stock. Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a $90 brokerage commission. Dec. 31 The trading securities of Holland, Inc. have a fair value on December 31 for $120,000. 2022  Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for $125,000. Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000. Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows: Issuing Company Cost Fair Value Holland, Inc. $126,000 $132,500 Fuller, Inc. 100,000 115,600 Instructions 1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entri

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Debt investment transactions, available-for-sale valuation
Rios Co. is a regional insurance company that began operations on January 1,
2021. The following selected transactions relate to investments acquired by Rios
Co., which has a fiscal year ending on December 31:
2021
Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per
share plus a brokerage commission of $75. Caldwell has 100,000
shares of common stock outstanding.
May 1 Purchased securities of Holland, Inc. as a trading investment for
$126,000.
July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110
brokerage commission.
July 31 Received an annual dividend of $0.50 per share on 3,000 shares of
Caldwell, Inc. stock.
Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a
$90 brokerage commission.
Dec. 31 The trading securities of Holland, Inc. have a fair value on December
31 for $120,000. 2022

 Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for
$125,000.

Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000.
Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows: Issuing Company Cost Fair Value Holland, Inc. $126,000 $132,500 Fuller, Inc. 100,000 115,600
Instructions

1. Journalize the entries to record the preceding transactions, including any
December 31 adjusting entri

Problem 15-1A
Question 1
2021
Feb.
May
July
31
Nov. 15
Dec. 31
2022
Apr.
1
Oct. 14
Dec. 31
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
ZIP PAEPER
Transcribed Image Text:Problem 15-1A Question 1 2021 Feb. May July 31 Nov. 15 Dec. 31 2022 Apr. 1 Oct. 14 Dec. 31 Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong ZIP PAEPER
PR 15-1A Debt investment transactions, available-for-sale valuation
Rios Co. is a regional insurance company that began operations on January 1,
2021. The following selected transactions relate to investments acquired by Rios
Co., which has a fiscal year ending on December 31:
2021
Feb. 1
May 1
July 1
July 31
Nov. 15
Dec. 31
2022
Apr. 1
Oct. 14
Dec. 31
Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per
share plus a brokerage commission of $75. Caldwell has 100,000
shares of common stock outstanding.
Purchased securities of Holland, Inc. as a trading investment for
$126,000.
Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110
brokerage commission.
Received an annual dividend of $0.50 per share on 3,000 shares of
Caldwell, Inc. stock.
Sold the remaining shares of Caldwell, Inc. for $51 per share less a
$90 brokerage commission.
The trading securities of Holland, Inc. have a fair value on December
31 for $120,000.
Purchased securities of Fuller, Inc. as a trading investment for
$125,000.
Sold securities of Fuller, Inc. that cost $25,000 for $30,000.
The fair values of the Holland, Inc. and Fuller, Inc. securities are as
follows:
Issuing Company
Holland, Inc.
Fuller, Inc.
Cost
Fair Value
$126,000 $132,500
100,000 115,600
Instructions
1. Journalize the entries to record the preceding transactions, including any
December 31 adjusting entries.
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage.
Transcribed Image Text:PR 15-1A Debt investment transactions, available-for-sale valuation Rios Co. is a regional insurance company that began operations on January 1, 2021. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: 2021 Feb. 1 May 1 July 1 July 31 Nov. 15 Dec. 31 2022 Apr. 1 Oct. 14 Dec. 31 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding. Purchased securities of Holland, Inc. as a trading investment for $126,000. Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110 brokerage commission. Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell, Inc. stock. Sold the remaining shares of Caldwell, Inc. for $51 per share less a $90 brokerage commission. The trading securities of Holland, Inc. have a fair value on December 31 for $120,000. Purchased securities of Fuller, Inc. as a trading investment for $125,000. Sold securities of Fuller, Inc. that cost $25,000 for $30,000. The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows: Issuing Company Holland, Inc. Fuller, Inc. Cost Fair Value $126,000 $132,500 100,000 115,600 Instructions 1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Investments and Financial instruments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education