Question

Flounder, Inc. had the following equity investment portfolio at January 1, 2017. 970 shares @ $15 each 860 shares @ $20 each 530 shares @ $9 each Evers Company Rogers Company Chance Company Equity investments cost Fair value adjustment Equity investments fair value $14,550 17,200 4,770 36,520 (7,280) $29,240 During 2017, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Flounder, Inc. sold 320 shares of Chance Company for $11 per share. 3. On May 15, Flounder, Inc. purchased 90 more shares of Evers Company stock at $16 per share. 4. At December 31, 2017, the stocks had the following price per share values: Evers $17, Rogers $19, and Chance $8. During 2018, the following transactions took place. 5. 6. 7. 8. On February 1, Flounder, Inc. sold the remaining Chance shares for $8 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2018, the stocks had the following price per share values: Evers $19 and Rogers $21.

Answer 1

Sr No Particulars Debit Credit 1720 Cash To Dividend Revenue 1720 Cash 35201 To Gain On Sale Of Investment To Equity Investment 640 2880 1440 Equity Investment To Cash 1440 960 Fair Value Adjustment 1 To Unrealised holding Gain Or Loss - Income 960 Cash 1680 210 Loss on Sale of Investment To Equity Investment 1890 1720 Cash To Dividend Revenue 1720| 3180 Dividend Receivable To Dividend Revenue 3180 5010 Fair Value Adjustment To Unrealised holding Gain Or Loss - Income 5010 Flounder Inc Balance Sheet (partial) 31-Dec-17 31-Dec-18 Current Assets Dividend Receivable 3180 Accumulated Other Comprehensiv Income Gain On Sale of Investment 640 -210