Homework Answers
As in the question it is mentioned that none of the Investment is accounted for under equity method, therefore we will value Investment in shares according to Fair value method as per the information given in the question.
Following are the journal entries for Pharoah company :-
a) Adjusting journal entries for the year 2017 for Investment in shares are as under :-
| Accounts | FS | Dr | Cr |
| Unrealised loss on equity investment ($74100 - $69900) | Income Statement | $4200 | |
| Investment in Gordons Inc. | Balance Sheet | $4200 |
| Account | FS | Dr | Cr |
| Unrealised loss on equity investment ( $178400 - $173900) |
IncomeStatement |
$4500 | |
| Investment in Wallace Corporation | Balance Sheet | $4500 |
| Account | FS | Dr | Cr |
| Investment in Martin Inc | Balance sheet | $1400 | |
| Unrealised gain in equity investment ( $64600 - $63200) | Income statement | $1400 |
b) Journal entries for the sale of Gordon stock:-
| Accounts | FS | Dr | Cr |
| Cash ( $45 * 1500) -$1200 | Balance sheet | $66300 | |
| Loss on sale | Income statement | $3600 | |
| Investment in gordon Inc ( $66300 + $3600) | Income statement |
$6990 |
| Account | FS | Dr | Cr |
| Transaction cost | Income statement | $1200 | |
| Cash | Balancesheet | $1200 |
c) Journal entries for the purchase of Earnhart Corp stock :-
| Accounts | FS | Dr | Cr |
| Investment in Earnhart Corp | Balance sheet | $52500 | |
| Fees | Income statement | $1300 | |
| Cash ( $52500 + $1300) | Balance sheet | $53800 |
d) Adjusting journal entries for Investment in shares for 2018 :-
| Account | FS | Dr | Cr |
| Unrealised loss in equity investment | Income statement | $3500 | |
| Investment in Enhart Corp | Balance sheet | $3500 |
| Account | FS | Dr | Cr |
| Unrealised loss in equity investment | Income statement | $3200 | |
| Investment in Martin Inc. | Balancesheet | $3200 |
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*Exercise 17-15 Pharoah Company has the following securities in its portfolio on December 31, 2017. None...
Exercise 17-15 Swifty Company has the following securities in its portfolio on December 31, 2017. None...
Exercise 17-15 Swifty Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Investments Fair Value 1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp. Common 400 shares of Martin, Inc., Preferred $77,600 172.000 63,500 $314,000 $73,200 167,200 65.100 $306,000 All of the securities were purchased in 2017. In 2018, Swifty completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc.,...
Exercise 17-15 Teal Company has the following securities in its portfolio on December 31, 2017. None...
Exercise 17-15 Teal Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $72,600 $68,600 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred 174,800 169,400 57,300 55,600 $303,000 $295,300 All of the securities were purchased in 2017 In 2018, Teal completed the following securities transactions Sold the 1,500 shares of Gordon, Inc., Common,...
Sunland Company has the following securities in its portfolio on December 31, 2020. None of these...
Sunland Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc., Common
$79,600
$74,700
5,000 shares of Wallace Corp., Common
170,900
165,800
400 shares of Martin, Inc., Preferred
65,800
67,200
$316,300
$307,700
All of the securities were purchased in 2020.
In 2021, Sunland completed the following securities
transactions.
March 1
Sold the 1,500 shares of Gordon, Inc., Common,...
Sage Company has the following securities in its portfolio on December 31, 2020. None of these...
Sage Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc.,
Common
$77,600
$73,200
5,000 shares of Wallace
Corp., Common
172,900
167,700
400 shares of Martin, Inc.,
Preferred
63,500
65,100
$314,000
$306,000
All of the securities were purchased in 2020.
In 2021, Sage completed the following securities
transactions.
March 1
Sold the 1,500 shares of
Gordon, Inc., Common,...
Indigo Company has the following securities in its portfolio on December 31, 2020. None of these...
Indigo Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $79,600 $74,700 5,000 shares of Wallace Corp., Common 170,900 165,800 400 shares of Martin, Inc., Preferred 65,800 67,200 $316,300 $307,700 All of the securities were purchased in 2020. In 2021, Indigo completed the following securities transactions March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
Marigold Company has the following securities in its portfolio on December 31, 2020. None of these...
Marigold Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $69,700 $65,500 5,000 shares of Wallace Corp., Common 193,400 188,300 400 shares of Martin, Inc., Preferred 60,300 61,800 $323,400 $315,600 All of the securities were purchased in 2020. In 2021, Marigold completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
Blue Company has the following securities in its portfolio on December 31, 2020. None of these...
Blue Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $76,900 $72,500 5,000 shares of Wallace Corp., Common 195,800 190,400 400 shares of Martin, Inc., Preferred 61,700 63,500 $334,400 $326,400 All of the securities were purchased in 2020. In 2021, Blue completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
all help is welcome! i alsways thumbs up if i can interpret the answer! the following...
all help is welcome! i alsways thumbs up if i can interpret the
answer!
the following has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Fair Value Investments Cost 1,500 shares of Gordon, Inc., Common $77,600 $73,200 5,000 shares of Wallace Corp., Common 172,900 167,700 65,100 400 shares of Martin, Inc., Preferred 63,500 $314,000 $306,000 All of the securities were purchased in 2017. In 2018, Sandhill completed...
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018:...
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018: Cost Fair Value 5,000 shares of Thomas Corp., Common $152,000 $140,000 10,000 shares of Gant, Common 182,000 190,100 $334,000 $330,100 All of the securities had been purchased in 2018. In 2019, Korman completed the following securities transactions: March 1 Sold 5,000 shares of Thomas Corp., Common @ $30.90 less fees of $1,500. April...
Problem 17-5 Crane Company has the following securities in its investment portfolio on December 31, 2017...
Problem 17-5
Crane Company has the following securities in its investment
portfolio on December 31, 2017 (all securities were purchased in
2017): (1) 3,100 shares of Anderson Co. common stock which cost
$58,900, (2) 9,900 shares of Munter Ltd. common stock which cost
$564,300, and (3) 5,600 shares of King Company preferred stock
which cost $229,600. The Fair Value Adjustment account shows a
credit of $10,500 at the end of 2017.
In 2018, Crane completed the following securities
transactions.
1....
Exercise 17-15 Swifty Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Investments Fair Value 1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp. Common 400 shares of Martin, Inc., Preferred $77,600 172.000 63,500 $314,000 $73,200 167,200 65.100 $306,000 All of the securities were purchased in 2017. In 2018, Swifty completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc.,...
Exercise 17-15 Teal Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $72,600 $68,600 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred 174,800 169,400 57,300 55,600 $303,000 $295,300 All of the securities were purchased in 2017 In 2018, Teal completed the following securities transactions Sold the 1,500 shares of Gordon, Inc., Common,...
Sunland Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc., Common
$79,600
$74,700
5,000 shares of Wallace Corp., Common
170,900
165,800
400 shares of Martin, Inc., Preferred
65,800
67,200
$316,300
$307,700
All of the securities were purchased in 2020.
In 2021, Sunland completed the following securities
transactions.
March 1
Sold the 1,500 shares of Gordon, Inc., Common,...
Sage Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc.,
Common
$77,600
$73,200
5,000 shares of Wallace
Corp., Common
172,900
167,700
400 shares of Martin, Inc.,
Preferred
63,500
65,100
$314,000
$306,000
All of the securities were purchased in 2020.
In 2021, Sage completed the following securities
transactions.
March 1
Sold the 1,500 shares of
Gordon, Inc., Common,...
Indigo Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $79,600 $74,700 5,000 shares of Wallace Corp., Common 170,900 165,800 400 shares of Martin, Inc., Preferred 65,800 67,200 $316,300 $307,700 All of the securities were purchased in 2020. In 2021, Indigo completed the following securities transactions March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
all help is welcome! i alsways thumbs up if i can interpret the
answer!
the following has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Fair Value Investments Cost 1,500 shares of Gordon, Inc., Common $77,600 $73,200 5,000 shares of Wallace Corp., Common 172,900 167,700 65,100 400 shares of Martin, Inc., Preferred 63,500 $314,000 $306,000 All of the securities were purchased in 2017. In 2018, Sandhill completed...
Problem 17-5
Crane Company has the following securities in its investment
portfolio on December 31, 2017 (all securities were purchased in
2017): (1) 3,100 shares of Anderson Co. common stock which cost
$58,900, (2) 9,900 shares of Munter Ltd. common stock which cost
$564,300, and (3) 5,600 shares of King Company preferred stock
which cost $229,600. The Fair Value Adjustment account shows a
credit of $10,500 at the end of 2017.
In 2018, Crane completed the following securities
transactions.
1....
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