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P16-3B On December 31, 2016, Bly Associates owned the following securities, held as long-term investments. Common Stock Woolridge Co. Coria Co. Sterling Motors Co. Shares 4,000 5,000 3,000 Cost $100,000 30,000 60,000

P16-3B On December 31, 2016, Bly Associates owned the following securities, held as long-term investments. Common Stock Woolridge Co. Coria Co. Sterling Motors Co. Shares 4,000 5,000 3,000 Cost $100,000 30,000 60,000

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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answer in text form please (without image), Note: .Every entry should have narration please
P16-3B On December 31, 2016, Bly Associates owned the following securities, held as long-term investments. Common Stock Woolridge Co. Coria Co. Sterling Motors Co. Nov. 1 Dec. 15 31 Shares 4,000 5,000 3,000 Cost $100,000 30,000 60,000 On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2017, the following transactions occurred. July 1 Received $1 per share semiannual cash dividend on Coria Co. common stock. Aug. 1 Received $0.50 per share cash dividend on Woolridge Co. common stock. Sept. 1 Sold 1,500 shares of Coria Co. common stock for cash at $7 per share. Oct. 1 Sold 600 shares of Woolridge Co. common stock for cash at $30 per share. Received $1 per share cash dividend on Sterling Motor Co. common stock. Received $0.50 per share cash dividend on Woolridge Co. common stock. Received $1 per share semiannual cash dividend on Coria Co. common stock. At December 31, the fair values per share of the common stocks were Woolridge Co. $23, Coria Co. $7, and Sterling Motors Co. $19. Instructions (a) Journalize the 2017 transactions and post to the account Stock Investments. (Use the T-account form.) (b) Prepare the adjusting entry at December 31, 2017, to show the securities at fair value. The stock should be classified as available-for-sale securities. (c) Show the balance sheet presentation of the investment-related accounts at December 31, 2017. At this date, Bly Associates has common stock $2,000,000 and retained earnings $1,200,000.
Transcribed Image Text:P16-3B On December 31, 2016, Bly Associates owned the following securities, held as long-term investments. Common Stock Woolridge Co. Coria Co. Sterling Motors Co. Nov. 1 Dec. 15 31 Shares 4,000 5,000 3,000 Cost $100,000 30,000 60,000 On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2017, the following transactions occurred. July 1 Received $1 per share semiannual cash dividend on Coria Co. common stock. Aug. 1 Received $0.50 per share cash dividend on Woolridge Co. common stock. Sept. 1 Sold 1,500 shares of Coria Co. common stock for cash at $7 per share. Oct. 1 Sold 600 shares of Woolridge Co. common stock for cash at $30 per share. Received $1 per share cash dividend on Sterling Motor Co. common stock. Received $0.50 per share cash dividend on Woolridge Co. common stock. Received $1 per share semiannual cash dividend on Coria Co. common stock. At December 31, the fair values per share of the common stocks were Woolridge Co. $23, Coria Co. $7, and Sterling Motors Co. $19. Instructions (a) Journalize the 2017 transactions and post to the account Stock Investments. (Use the T-account form.) (b) Prepare the adjusting entry at December 31, 2017, to show the securities at fair value. The stock should be classified as available-for-sale securities. (c) Show the balance sheet presentation of the investment-related accounts at December 31, 2017. At this date, Bly Associates has common stock $2,000,000 and retained earnings $1,200,000.
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