Paul2021-06-24 09:50:412021-06-24 09:50:41Accounting Question: ACCT 221
On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.
|Carlene Co.|| ||2,000|| ||$60,000|
|Riverdale Co.|| ||5,000|| ||45,000|
|Raczynski Co.|| ||1,500|| ||30,000|
On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the following transactions occurred.
|July 1|| ||Received $1 per share semiannual cash dividend on Riverdale Co. common stock.|
|Aug. 1|| ||Received $0.50 per share cash dividend on Carlene Co. common stock.|
|Sept. 1|| ||Sold 1,500 shares of Riverdale Co. common stock for cash at $8 per share, less brokerage fees of $300.|
|Oct. 1|| ||Sold 800 shares of Carlene Co. common stock for cash at $33 per share, less brokerage fees of $500.|
|Nov. 1|| ||Received $1 per share cash dividend on Raczynski Co. common stock.|
|Dec. 15|| ||Received $0.50 per share cash dividend on Carlene Co. common stock.|
|Dec. 31|| ||Received $1 per share semiannual cash dividend on Riverdale Co. common stock.|
At December 31, the fair values per share of the common stocks were: Carlene Co. $32, Riverdale Co. $8, and Raczynski Co. $18.
Journalize the 2013 transactions and post to the account Stock Investments. (Use the T-account form.)
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)