V. On December 31, 2021. Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. Ordinary Shares Cost Shares Carlene Co 2,000 £60,000 Riverdale Co 5,000 45,000 Raczynski Co 1,500 30,000 Ogallala made an irrevocable option to measure the equity investment as fair value through other comprehensive income. On December 31, 2021, the total fair value of the securities was equal to its cost. In 2022, the following transactions occurred. Aug. 1 Received £0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. 1 Oct. 1 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. Received £1 per share cash dividend on Raczynşki Co. ordinary shares Nov 1 Dec. 15 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. £8, and Raczynski Co. £ 18. Instructions (20%) a. Journalize the 2022 transactions

V. On December 31, 2021. Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. Ordinary Shares Cost Shares Carlene Co 2,000 £60,000 Riverdale Co 5,000 45,000 Raczynski Co 1,500 30,000 Ogallala made an irrevocable option to measure the equity investment as fair value through other comprehensive income. On December 31, 2021, the total fair value of the securities was equal to its cost. In 2022, the following transactions occurred. Aug. 1 Received £0.70 per share cash dividend on Carlene Co. ordinary shares. Sept. 1 Oct. 1 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. Received £1 per share cash dividend on Raczynşki Co. ordinary shares Nov 1 Dec. 15 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. £8, and Raczynski Co. £ 18. Instructions (20%) a. Journalize the 2022 transactions

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 17P

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