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 per share dividend. 7. On December 21, Evers Company declared a cash dividend of $ 3 per share to be paid in the next month. 8. At December 31, 2021, the stocks had the following price per share values: Evers $ 20 and Rogers $ 21. Prepare journal entries for each of the above transactions.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 per share dividend.
7.		On December 21, Evers Company declared a cash dividend of $ 3 per share to be paid in the next month.
8.		At December 31, 2021, the stocks had the following price per share values: Evers $ 20 and Rogers $ 21.