During the course of your examination of the financial statements of Marigold Corporation for the year ended December 31, 2025, you found a new account, "Investments." Your examination revealed that during 2025, Marigold began a program of investments, and all investment-related transactions were entered into this account. Your analysis of this account for 2025 follows: Marigold Corporation Analysis of Investments Account For the Year Ended December 31, 2025 Debit Credit Prepare any necessary correcting journal entries related to investments in Cullumber Company (List all debit entries before credit entries. 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.) Account Titles and Explanation Correct entry: Debit Credit Date-2025 (a) Cullumber Company Common Stock Feb. 14 Purchased 4,300 shares @ $55 per share. $236,500 July 26 Received 430 shares of Cullumber Company common stock as a stock dividend. (Memorandum entry in general ledger.) Sept. 28 Sold the 430 shares of Cullumber Company common stock received July 26 @ $59 per $25,370 share. (b) Robert Inc. Common Stock Apr. 30 Purchased 21,700 shares @ $41 per share. Oct 28 Received dividend of $1 per share. Additional information: 1. The fair value for each security as of the 2025 date of each transaction follow: Security Feb. 14 Apr. 30 July 26 Sept. 28 Dec. 31 Cullumber Company Robert Inc. $55 $63 $59 $65 $41 34 Marigold Corp. 25 28 30 34 35 2. All of the investments of Marigold are nominal in respect to the percentage of ownership (5% or less). $889,700 $21,700 Entry made: Correction:
During the course of your examination of the financial statements of Marigold Corporation for the year ended December 31, 2025, you found a new account, "Investments." Your examination revealed that during 2025, Marigold began a program of investments, and all investment-related transactions were entered into this account. Your analysis of this account for 2025 follows: Marigold Corporation Analysis of Investments Account For the Year Ended December 31, 2025 Debit Credit Prepare any necessary correcting journal entries related to investments in Cullumber Company (List all debit entries before credit entries. 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.) Account Titles and Explanation Correct entry: Debit Credit Date-2025 (a) Cullumber Company Common Stock Feb. 14 Purchased 4,300 shares @ $55 per share. $236,500 July 26 Received 430 shares of Cullumber Company common stock as a stock dividend. (Memorandum entry in general ledger.) Sept. 28 Sold the 430 shares of Cullumber Company common stock received July 26 @ $59 per $25,370 share. (b) Robert Inc. Common Stock Apr. 30 Purchased 21,700 shares @ $41 per share. Oct 28 Received dividend of $1 per share. Additional information: 1. The fair value for each security as of the 2025 date of each transaction follow: Security Feb. 14 Apr. 30 July 26 Sept. 28 Dec. 31 Cullumber Company Robert Inc. $55 $63 $59 $65 $41 34 Marigold Corp. 25 28 30 34 35 2. All of the investments of Marigold are nominal in respect to the percentage of ownership (5% or less). $889,700 $21,700 Entry made: Correction:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the course of your examination of the financial statements of Marigold Corporation for the year ended December 31, 2025,
you found a new account, "Investments." Your examination revealed that during 2025, Marigold began a program of investments, and
all investment-related transactions were entered into this account. Your analysis of this account for 2025 follows:
Marigold Corporation
Analysis of Investments Account
For the Year Ended December 31, 2025
Debit
Credit
Prepare any necessary correcting journal entries related to investments in Cullumber Company (List all debit entries before credit
entries. 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.)
Account Titles and Explanation
Correct entry:
Debit
Credit
Date-2025
(a)
Cullumber Company Common Stock
Feb. 14
Purchased 4,300 shares @ $55 per share.
$236,500
July
26
Received 430 shares of Cullumber Company common stock as a stock dividend.
(Memorandum entry in general ledger.)
Sept.
28
Sold the 430 shares of Cullumber Company common stock received July 26 @ $59 per
$25,370
share.
(b)
Robert Inc. Common Stock
Apr. 30
Purchased 21,700 shares @ $41 per share.
Oct
28
Received dividend of $1 per share.
Additional information:
1. The fair value for each security as of the 2025 date of each transaction follow:
Security
Feb. 14
Apr. 30
July 26
Sept. 28
Dec. 31
Cullumber Company
Robert Inc.
$55
$63
$59
$65
$41
34
Marigold Corp.
25
28
30
34
35
2. All of the investments of Marigold are nominal in respect to the percentage of ownership (5% or less).
$889,700
$21,700
Entry made:
Correction:
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