Prepare journal entries for each of the above transactions.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Problem 17-10

Marin, Inc. had the following equity investment portfolio at January 1, 2020.

Evers Company   960 shares @ $15 each   $14,400  
Rogers Company   860 shares @ $19 each   16,340  
Chance Company   480 shares @ $8 each   3,840  
Equity investments @ cost       34,580  
Fair value adjustment       (7,780 )
Equity investments @ fair value       $26,800  

During 2020, the following transactions took place.

1.   On March 1, Rogers Company paid a $2 per share dividend.
2.   On April 30, Marin, Inc. sold 300 shares of Chance Company for $12 per share.
3.   On May 15, Marin, Inc. purchased 110 more shares of Evers Company stock at $16 per share.
4.   At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $7.

During 2021, the following transactions took place.

5.   On February 1, Marin, Inc. sold the remaining Chance shares for $7 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 $19 and Rogers $20.
 
 
 
 
 
Prepare journal entries for each of the above transactions. (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 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
(1)
 
 
 
 
 
 
 
(2)
 
 
 
 
 
 
 
 
 
 
 
(3)
 
 
 
 
 
 
 
(4)
 
 
 
 
 
 
 
(5)
 
 
 
 
 
 
 
 
 
 
 
(6)
 
 
 
 
 
 
 
(7)
 
 
 
 
 
 
 
(8)
 
 
 
 
 
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Investments and Financial instruments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education