Accounting Problem Solution
On Dec 31, 08, Ramey Affiliates owned the subsequent securities, held as a long term investment. The securities are certainly not held to get influence or control of the investee. Common Stock| Shares| Cost
Hurst Co. | 2000| $60000
Pine Company. | 5000| $45000
Jeff Co. | 1500| $30000
On Dec 31, 08, the total good value with the securities was equal to its expense. In 2009, the subsequent transactions took place. July 1Received $1 per share semiannual cash dividend on Pinus radiata Co. common stock. August 1Received $0. 50 per share cash dividend upon Hurst Co. common share. Sept 1Sold 1, five-hundred shares of Pine Company. common stock for funds at $8 per share, less broker agent fees of $300. April 1Sold 800 shares of Hurst Co. common inventory for cash at $33 per share, less brokerage fees of $500. November 1Received $1 per reveal cash dividend on Jeff Co. common stock. Dec 15Received $0. 50 every share dividend on Hurst Co. common stock. December 31Received $1 per discuss semiannual cash dividend about Pine Company. common share. At Dec 31, the fair ideals per reveal of prevalent stocks had been: Hurst Company. $32, Pinus radiata Co. $8, and Jeff Co. $18. Instructions
a. Journalized the 2009 orders and post to the consideration Stock Opportunities. (use the T-account form. ) b. Prepare the adjusting admittance at 12 , 31, 2009, to show the securities in fair benefit. The inventory should be grouped as available securities. c. Show the "balance sheet" presentation from the investments at December thirty-one, 2009. As of this date, Ramey Associates features common share $1, 500, 000 and retained profits $1000, 1000.
a. Basic Journal
Date| Transactions| Debit| Credit
June 1, 2009| Cash| В | $ a few, 000 | В
| В | Divedend revenue(5000shx$1)| В | $ your five, 000 | August you, 2009| Cash| В | $ 1, 500 | В
| В | Divedend revenue(2000shx$0. 5)| В | $ 1, 000 | September one particular, 2009| Cash| В | В | В
| Loss available of inventory investment| money 11, seven-hundred | В |...