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ialize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. for share inmestments. Ordinary Shares Shares Cost Carlene Co. 2.000 £60,000 Riverdale Co. 5,000 45,000 Raczynski Co. 1.500 30,000 On December 31, 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing transactions occurred. Aug. I Received £0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. I Oct. Sold 2,000 ordinary shares of Riverdale Co. for cash at E8 per share. Sold 800 ordinary shares of Carlene Co. for cash at £33 per share. Problems 16 Nov. 1 Dec. 15 Received £l per share cash dividend on Raczynski Co. ordinary shares. Received £0.70 per share cash dividend on Carlene Co. ordinary shares. 31 Received £1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. £32. Riverdale Co. E8, and Raczynski Co. £18. Instructions a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account form.) b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares should be classified as non-trading securities. b. Unrealized loss £3,600 c. Show the statement of financial position presentation of the investments at December 31, 2020. At this date. Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings £1,000,000.

ialize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. for share inmestments. Ordinary Shares Shares Cost Carlene Co. 2.000 £60,000 Riverdale Co. 5,000 45,000 Raczynski Co. 1.500 30,000 On December 31, 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing transactions occurred. Aug. I Received £0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. I Oct. Sold 2,000 ordinary shares of Riverdale Co. for cash at E8 per share. Sold 800 ordinary shares of Carlene Co. for cash at £33 per share. Problems 16 Nov. 1 Dec. 15 Received £l per share cash dividend on Raczynski Co. ordinary shares. Received £0.70 per share cash dividend on Carlene Co. ordinary shares. 31 Received £1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. £32. Riverdale Co. E8, and Raczynski Co. £18. Instructions a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account form.) b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares should be classified as non-trading securities. b. Unrealized loss £3,600 c. Show the statement of financial position presentation of the investments at December 31, 2020. At this date. Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings £1,000,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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urnalize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. ury for shaare investments. Ordinary Shares Shares Cost Carlene Co. 2,000 £60,000 Riverdale Co. 5,000 45,000 Raczynski Co. 1.500 30,000 On December 31. 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing transactions occurred. Aug. I Sept. I Oct. Received £0.70 per share cash dividend on Carlene Co, ordinary shares. Sold 2,000 ordinary shares of Riverdale Co. for cash at €8 per share. Sold 800 ordinary shares of Carlene Co. for cash at £33 per share. Problems 16-35 Nov. 1 Received £1 per share cash dividend on Raczynski Co. ordinary shares. Received £0.70 per share cash dividend on Carlene Co. ordinary shares. 31 Dec. 15 Received £1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. £32, Riverdale Co. £8, and Raczynski Co. £18. Instructions a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account form.) b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares should be classified as non-trading securities. b. Unrealized loss £3,600 c. Show the statement of financial position presentation of the investments at December 31, 2020. At this date, Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings £1,000,000.
Transcribed Image Text:urnalize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. ury for shaare investments. Ordinary Shares Shares Cost Carlene Co. 2,000 £60,000 Riverdale Co. 5,000 45,000 Raczynski Co. 1.500 30,000 On December 31. 2019, the total fair value of the securities was equal to its cost. In 2020, the follow ing transactions occurred. Aug. I Sept. I Oct. Received £0.70 per share cash dividend on Carlene Co, ordinary shares. Sold 2,000 ordinary shares of Riverdale Co. for cash at €8 per share. Sold 800 ordinary shares of Carlene Co. for cash at £33 per share. Problems 16-35 Nov. 1 Received £1 per share cash dividend on Raczynski Co. ordinary shares. Received £0.70 per share cash dividend on Carlene Co. ordinary shares. 31 Dec. 15 Received £1 per share annual cash dividend on Riverdale Co. ordinary shares. At December 31, the fair values per share of the ordinary shares were Carlene Co. £32, Riverdale Co. £8, and Raczynski Co. £18. Instructions a. Journalize the 2020 transactions and post to the account Share Investments. (Use the T-account form.) b. Prepare the adjusting entry at December 31, 2020, to show the securities at fair value. The shares should be classified as non-trading securities. b. Unrealized loss £3,600 c. Show the statement of financial position presentation of the investments at December 31, 2020. At this date, Ogallala Associates has share capital-ordinary £1.500.000 and retained earnings £1,000,000.
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