Here is Cullumber Company's portfolio of long-term stock investments at December 31, 2021, the end of its first year of operations. 1.200 shares of Willhite Corporation common stock 1,300 shares of Hutcherson Corporation common stock 1,000 shares of Downing Corporation preferred stock On December 31, the total cost of the portfolio equaled the total fair value. Cullumber had the following transactions related to the securities during 2022. 28 30 Jan. 20 Sold all 1.200 shares of Willhite Corporation common stock at $53 per share. Feb. 8 18 July 30 Sept. 6 Dec. 1 Cost $60,000 76,700 26,000 w Transcribed Text Purchased 480 shares of $71 par value common stock of Liggett Corporation at $79 per share. Received a cash dividend of $1.30 per share on Hutcherson Corp.common stock. Received cash dividends of $0.70 per share on Downing Corp. preferred stock. Sold all 1,000 shares of Downing Corp. preferred stock at $25 per share. Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock. Purchased an additional 900 shares of $15 par value common stock of Liggett Corporation at $83 per share. Received a cash dividend of $1.40 per share on Liggett Corporation common stock. 3 At December 31, 2022, the fair values of the securities were: Hutcherson Corporation common stock Liggett Corporation common stock $63 per share $73 per share
Here is Cullumber Company's portfolio of long-term stock investments at December 31, 2021, the end of its first year of operations. 1.200 shares of Willhite Corporation common stock 1,300 shares of Hutcherson Corporation common stock 1,000 shares of Downing Corporation preferred stock On December 31, the total cost of the portfolio equaled the total fair value. Cullumber had the following transactions related to the securities during 2022. 28 30 Jan. 20 Sold all 1.200 shares of Willhite Corporation common stock at $53 per share. Feb. 8 18 July 30 Sept. 6 Dec. 1 Cost $60,000 76,700 26,000 w Transcribed Text Purchased 480 shares of $71 par value common stock of Liggett Corporation at $79 per share. Received a cash dividend of $1.30 per share on Hutcherson Corp.common stock. Received cash dividends of $0.70 per share on Downing Corp. preferred stock. Sold all 1,000 shares of Downing Corp. preferred stock at $25 per share. Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock. Purchased an additional 900 shares of $15 par value common stock of Liggett Corporation at $83 per share. Received a cash dividend of $1.40 per share on Liggett Corporation common stock. 3 At December 31, 2022, the fair values of the securities were: Hutcherson Corporation common stock Liggett Corporation common stock $63 per share $73 per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
Transcribed Image Text:Here is Cullumber Company's portfolio of long-term stock investments at December 31, 2021, the end of its first year of operations.
1,200 shares of Willhite Corporation common stock
1,300 shares of Hutcherson Corporation common stock
1,000 shares of Downing Corporation preferred stock
Jan. 20
On December 31, the total cost of the portfolio equaled the total fair value. Cullumber had the following transactions related to the
securities during 2022.
28
30
Feb. 8
18
July 30
Sept. 6
Dec. 1
Cost
$60,000
76,700
26,000
Show Transcribed Text
Sold all 1,200 shares of Willhite Corporation common stock at $53 per share.
Purchased 480 shares of $71 par value common stock of Liggett Corporation at $79 per share.
Received a cash dividend of $1.30 per share on Hutcherson Corp. common stock.
Received cash dividends of $0.70 per share on Downing Corp. preferred stock.
Sold all 1,000 shares of Downing Corp. preferred stock at $25 per share.
Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock.
Purchased an additional 900 shares of $15 par value common stock of Liggett Corporation at $83 per share.
Received a cash dividend of $1.40 per share on Liggett Corporation common stock.
At December 31, 2022, the fair values of the securities were:
Hutcherson Corporation common stock
Liggett Corporation common stock
$63 per share
$73 per share
Transcribed Image Text:(b)
Post to the investment account. (Use T-accounts.) (Post entries in the order of journal entries presented in the previous part.)
Show Transcribed Text
(c)
Prepare the adjusting entry at December 31, 2022 to report the portfolio at fair value. (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)
Date Account Titles and Explanation
Dec. 31
Stock Investments
Show Transcribed Text
(d)
3
Ć
Debit
Show the balance sheet presentation at December 31, 2022, for the investment-related accounts.
Cullumber Company
Balance Sheet (Partial)
Credit
$ xxxxxx
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