Debt investment transactions, available-for-sale valuationRios 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 31:2021Feb. 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. 100,000 115,600Instructions1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entri The diagram is titled "Problem 15-1A Question 1" and organizes data by date, listing significant moments in both 2021 and 2022.### 2021- **February 1**: Entry followed by two sections labeled "Wrong."- **May 1**: Entry followed by two sections labeled "Wrong."- **July 1**: Entry followed by three sections labeled "Wrong."- **July 31**: Entry followed by two sections labeled "Wrong."- **November 15**: Entry followed by three sections labeled "Wrong."- **December 31**: Entry followed by two sections labeled "Wrong."### 2022- **April 1**: Entry followed by two sections labeled "Wrong."- **October 14**: Entry followed by three sections labeled "Wrong."- **December 31**: Entry followed by two sections labeled "Wrong."The entries are represented in columns with blue and yellow colors. The "Wrong" labels may indicate incorrect responses or data errors at each corresponding date entry. Each date has a structured format, aligning with textual and graphical elements for a precise presentation of material, possibly in a timeline or data tracking context. **Debt Investment Transactions, Available-for-Sale Valuation**Rios Co. is a regional insurance company that began operations on January 1, 2021. Below are selected transactions related to investments acquired by Rios Co., which has a fiscal year ending on December 31:**2021 Transactions**- **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 of $120,000.**2022 Transactions**- **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: - **Holland, Inc.**: Cost $126,000, Fair Value $132,500 - **Fuller, Inc.**: Cost $100,000, Fair Value $115,600**Instructions**1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries.*(Reference: Warren, C. S., Jonick, C. A., & Schneider, J. S. (2021). Accounting (28th ed.). Boston, MA: Cengage.)*

Journal Entry is a part of accounting process which helps a company to maintain the record of…

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

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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

The diagram is titled "Problem 15-1A Question 1" and organizes data by date, listing significant moments in both 2021 and 2022.

### 2021
- **February 1**: Entry followed by two sections labeled "Wrong."
- **May 1**: Entry followed by two sections labeled "Wrong."
- **July 1**: Entry followed by three sections labeled "Wrong."
- **July 31**: Entry followed by two sections labeled "Wrong."
- **November 15**: Entry followed by three sections labeled "Wrong."
- **December 31**: Entry followed by two sections labeled "Wrong."

### 2022
- **April 1**: Entry followed by two sections labeled "Wrong."
- **October 14**: Entry followed by three sections labeled "Wrong."
- **December 31**: Entry followed by two sections labeled "Wrong."

The entries are represented in columns with blue and yellow colors. The "Wrong" labels may indicate incorrect responses or data errors at each corresponding date entry. Each date has a structured format, aligning with textual and graphical elements for a precise presentation of material, possibly in a timeline or data tracking context.

**Debt Investment Transactions, Available-for-Sale Valuation**

Rios Co. is a regional insurance company that began operations on January 1, 2021. Below are selected transactions related to investments acquired by Rios Co., which has a fiscal year ending on December 31:

**2021 Transactions**

- **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 of $120,000.

**2022 Transactions**

- **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:
- **Holland, Inc.**: Cost $126,000, Fair Value $132,500
- **Fuller, Inc.**: Cost $100,000, Fair Value $115,600

**Instructions**

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

*(Reference: Warren, C. S., Jonick, C. A., & Schneider, J. S. (2021). Accounting (28th ed.). Boston, MA: Cengage.)*

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