Question

Problem 17-10 Pharoah, Inc. had the following equity investment portfolio at January 1, 2017 $13,300 950 shares @ $14 each 900 shares @ $20 each 480 shares @ $10 each Evers Company Rogers Company Chance Company Equity investments @ cost Fair value adjustment Equity investments @ fair value 18,000 4,800 36,100 (7.260 ) $28,840S During 2017, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Pharoah, Inc. sold 310 shares of Chance Company for $12 per share. 3. On May 15, Pharoah, Inc. purchased 90 more shares of Evers Company stock at $15 per share. 4. At December 31, 2017, the stocks had the following price per share values: Evers $16, Rogers $19, and Chance $9. During 2018, the following transactions took place, 5. On February 1, Pharoah, 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, 2018, the stocks had the following price per share values: Evers $18 and Rogers $21.

Answer 1

During 2017 Entries will be made
S. No.	No. Account Titles and Explanation	Debit	Credit
1	Bank A/c                                                    Dr.	1800
	To Dividend Recd. A/c		1800
	(Dividend received from Rogers Co.)
2	Bank A/c                                                    Dr.	3720
	To Shares in Chance Co.		3100
	To Profit On sales of Shares in Chance Co.		620
	( 310 Shares sold of Chance Company)
3	Shares in Evers Co.                             Dr.	1350
	To Bank A/c		1350
	(90 more shares purchased in Evers Co. )
During 2018 Entries will be made
1	Bank A/c                                                    Dr.	1530
	To Shares in Chance Co.		1530
	(Remaining 170 Shares in chance Co. Sold)
2	Bank A/c                                                    Dr.	1800
	To Dividend Recd. A/c		1800
	(Dividend received from Rogers Co.)
2	Evers Co.                                                Dr.	3120
	To Dividend Recd. A/c		3120
	(Dividend from Evers Co. tobe received in next month)
Pharoah, Inc.
Balance Sheet(Partial)
Details		Dec,31 2017	Dec,31 2018
	Shares in Rogers Co.	17100	17100
	Shares in Evers Co.	14650	14650
	Shares in Chance Co.	1530	-
	Accrued Dividend from Evers Co.		3120