181. Weston Company had the following long-term available-for-sale securities in its portfolio at December 31, Year 1.Weston had several long-term investment transactions during the next year. After analyzing the effects of each transaction, (1) determine the amount Weston should report on its December 31, Year 1 balance sheet for its long-term investments in available-for-sale securities, (2) determine the amount Weston should report on its December 31, Year 2 balance sheet for its long-term investments in available-for-sale securities, (3) prepare the necessary adjusting entry to record the fair value adjustment at December 31, Year 2. Available-for-Sale Securities (LT) Cost Fair Value 40,000 shares of Beach common stock....... $ 497,500 $ 488,900 15,000 shares of Danfield common stock..... 410,200 412,600 18,000 shares of Cardinal common stock..... 399,600 382,500 Jan. 22 Sold 9,000 shares of Cardinal common stock for $203,000 less a brokerage fee of $850. Mar. 17 Purchased 30,000 shares of Apex common stock for $995,000 plus a brokerage fee of $2,500. The shares represent a 30% ownership in Apex. Jun. 10 Purchased 108,000 shares of Desert Springs common stock for $1,525,000 plus a brokerage fee of $4,200. The shares represent a 54% ownership in Desert Springs. Nov. 01 Purchased 12,000 shares of Cliff common stock for $223,500 plus a brokerage fee of $450. The shares represent a 10% ownership. Dec. 31 At December 31, Year 2, the fair values of its investments are: Beach, $502,500; Danfield, $411,800; Cardinal, $203,100; Apex, $1,113,250; Desert Springs, $1,576,000; Cliff, $224,750. 182. On January 2, Froxel Company purchased 10,000 shares of Sandia Corp. common stock at $19 per share plus a $3,000 commission. This represents 30% of Sandia Corp.'s outstanding stock. On August 6, Sandia Corp. declared and paid cash dividends of $1.75 per share, and on December 31 it reported net income of $150,000. Prepare the necessary entries for Froxel to account for these transactions and events.

181. Weston Company had the following long-term available-for-sale securities in its portfolio at December 31, Year 1.Weston had several long-term investment transactions during the next year. After...

181. Weston Company had the following long-term available-for-sale securities in its portfolio at December 31, Year 1.Weston had several long-term investment transactions during the next year. After analyzing the effects of each transaction, (1) determine the amount Weston should report on its December 31, Year 1 balance sheet for its long-term investments in available-for-sale securities, (2) determine the amount Weston should report on its December 31, Year 2 balance sheet for its long-term investments in available-for-sale securities, (3) prepare the necessary adjusting entry to record the fair value adjustment at December 31, Year 2.

Available-for-Sale Securities (LT)	Cost	Fair Value
40,000 shares of Beach common stock.......	$ 497,500	$ 488,900
15,000 shares of Danfield common stock.....	410,200	412,600
18,000 shares of Cardinal common stock.....	399,600	382,500

Jan. 22	Sold 9,000 shares of Cardinal common stock for $203,000 less a brokerage fee of $850.
Mar. 17	Purchased 30,000 shares of Apex common stock for $995,000 plus a brokerage fee of $2,500. The shares represent a 30% ownership in Apex.
Jun. 10	Purchased 108,000 shares of Desert Springs common stock for $1,525,000 plus a brokerage fee of $4,200. The shares represent a 54% ownership in Desert Springs.
Nov. 01	Purchased 12,000 shares of Cliff common stock for $223,500 plus a brokerage fee of $450. The shares represent a 10% ownership.
Dec. 31	At December 31, Year 2, the fair values of its investments are: Beach, $502,500; Danfield, $411,800; Cardinal, $203,100; Apex, $1,113,250; Desert Springs, $1,576,000; Cliff, $224,750.

182. On January 2, Froxel Company purchased 10,000 shares of Sandia Corp. common stock at $19 per share plus a $3,000 commission. This represents 30% of Sandia Corp.'s outstanding stock. On August 6, Sandia Corp. declared and paid cash dividends of $1.75 per share, and on December 31 it reported net income of $150,000. Prepare the necessary entries for Froxel to account for these transactions and events.

May 15, 2022

SOLUTION.PDF

181. Weston Company had the following long-term available-for-sale securities in its portfolio at December 31, Year 1.Weston had several long-term investment transactions during the next year. After...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment