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- Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 970 shares @ $14 each $13,580 Rogers Company 910 shares @ $18 each 16,380 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 34,460 Fair value adjustment (7,840 ) Equity investments @ fair value $26,620 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share. 3. On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share. 6. On March 1, Rogers Company paid a $2 per share dividend.…Lover Company reported the following non-trading equity securities held as FA at FVOCI in its December 31, 2015 statement of financial position: Broken Company ordinary shares, at cost 2,000,000 Allowance for market adjustment for unrealized loss (300,000) Market value 1,700,000 On December 31, 2016, the market value of Lover’s investment is P1,950,000. As a result of the change in market value, Lover’s statement of comprehensive income for 2016 should report What is the gain on sale in 2017 if the securities are sold at 2,500,000?Red Company issued shares as consideration for the purchase of inventory on January 1, 2021. The inventory was eventually sold on May 1, 2021. The value of the inventory on January 1, 2021 was P2,500,000 and its value on the date of sale was P2,700,000. The sales proceeds amounted to P3,700,000. The shares issued have a market value of P2,200,000 and a par value of P2,000,000. How much is the gross profit from the sale of the inventory on May 1, 2021?
- Wildhorse Company's December 31, 2024 stockholders' equity section reported Accumulated Other Comprehensive Income of $61000 which reflected cumulative gains. The following information is available for Wildhorse for 2025: Net income Realized gain on sale of available-for-sale debt securities Unrealized holding gain on available-for-sale debt securities Unrealized holding loss on available-for-sale equity securities What is Wildhorse's comprehensive income for 2025? O $266500 O $322500 O $307500 O $225500 $266500 36000 41000 21000Kenseth Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., common $ 73,500 $ 69,000 5,000 shares of Wallace Corp., common 180,000 175,000 400 shares of Martin, Inc., preferred 60,000 61,600 $313,500 $305,600 All of the securities were purchased in 2020. In 2021, Kenseth completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,300. Kenseth's portfolio of equity securities appeared as follows on December 31, 2021. Investments Cost Fair Value 5,000 shares of Wallace Corp., common $180,000 $175,000 700 shares of Earnhart Corp., common 53,800 50,400 400 shares of Martin, Inc., preferred 60,000 58,000…Culver Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $ 67,700 $ 63,000 5,000 shares of Wallace Corp., Common 164,700 159,600 400 shares of Martin, Inc., Preferred 59,300 61,100 $ 291,700 $ 283,700 All of the securities were purchased in 2020.In 2021, Culver completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common, @ $ 45 less fees of $ 1,200. April 1 Bought 700 shares of Earnhart Corp., Common, @ $ 75 plus fees of $ 1,300. Culver’s portfolio of equity securities appeared as follows on December 31, 2021. Investments Cost Fair Value 5,000 shares of Wallace Corp., Common $ 164,700 $ 159,600 700 shares of Earnhart Corp., Common 53,800 50,100 400 shares of Martin, Inc., Preferred 59,300 57,500…
- On December 21, 2020, Sweet Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,300 $18,200 $(1,100 ) Colorado Co. stock 10,400 9,400 (1,000 ) Buffaloes Co. stock 19,300 19,930 630 Total of portfolio $49,000 $47,530 (1,470 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,470 ) During 2021, Colorado Co. stock was sold for $9,910. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$18,310; Buffaloes Co. stock—$19,830. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2…Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
- Pecan Company has the following portfolio of investment securities at September 30, 2025, its last reporting date. Trading Securities Perry, Inc. common (12,000 shares) Platter, Inc. common (6,100 shares) Pokey Corp. preferred (1,000 shares) Cost $367,000 244,000 Date 94,000 Fair Value $351,000 248,000 On November 5, 2025, the Platter shares were sold at a price of $42 per share. In addition, 8,000 shares of Patriot common stock were acquired at $37 per share on November 26, 2025. The December 31, 2025, fair values were: Perry $348,000, Pokey $90,000, and the Patriot common $301,000. The Fair Value Adjustment account was at zero (0) as of September 30, 2025. 89,000 Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for…The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2023. March 31 Acquired 8% Distribution Transformers Corporation bonds costing $520,000 at face value. September 1 Acquired $1,260,000 of American Instruments' 10% bonds at face value. September 30 Received semiannual interest payment on the Distribution Transformers bonds. October 2 Sold the Distribution Transformers bonds for $550,000. November 1 Purchased $2,000,000 of M&D Corporation 6% bonds at face value. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds M&D Corporation bonds (Hint: Interest must be accrued.) Required: 1.…The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $560,000 at face value. Sep. 1 Acquired $1,380,000 of American Instruments' 10% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $610,000. Nov. 1 Purchased $2,200,000 of M&D Corporation 6% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds $ 1,336,000 M&D…
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