Eco Corporation had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. April 16Purchased 4,000 shares of Ontario Company stock at $26 per share.July 7Purchased 2,500 shares of Van Company stock at $51 per share.July 20Purchased 1,200 shares of Twinings Company stock at $18 per share.August 15Received an $1.00 per share cash dividend on the Ontario Company stock.August 28Sold 2,400 shares of Ontario Company stock at $29 per share.October 1Received a $3.10 per share cash dividend on the Van Company shares.December 15Received a $1.20 per share cash dividend on the remaining Ontario Company shares.December 31Received a $2.50 per share cash dividend on the Van Company shares. 2Journal entry worksheet< 1 2 3 4Purchased 4,000 shares of Ontario Company stock at $26 per share.Journal entry worksheet<1 23Purchased 1,200 shares of Twinings Company stock at $18 per share.465 6 7 8 95767 8Sold 2,400 shares of Ontario Company stock at $29 per share.< 1 2 3 4 5 6 7 8 98Received a $1.20 per share cash dividend on the remaining Ontario Companyshares.9Journal entry worksheet< 1 2 3 4 5 6 7 8 9>9Using the information on the Fair Value adjustment tab, prepare an adjustingentry, if necessary, to record the year-end fair value adjustment for theportfolio of short-term investments in available-for-sale securities.Purchased 2,500 shares of Van Company stock at $51 per share.No.Journal entry worksheet< 1 2 3Journal entry worksheet< 1 2 3 4 5 6No.No.No.Received an $1.00 per share cash dividend on the Ontario Company stockReceived a $3.10 per share cash dividend on the Van Company shares.< 12 3 4 5 6 7 8DateJan 01DeleJan 014Received a $2.50 per share cash dividend on the Van Company shares.DeleJan 01CashDebitInventory5DebitCreditCreditLong-term notes payableDebitCreditPaid-in capital in excess of par-CommonDateJan 017 8Balance1,305,000Balance40,0007General Ledger AccountBalance340.000Debit Credit Balance110.000No.No.A8 9No.No.DataJan 01DataJan 01DateJan 019DateJan 01Accounts receivableDubitAccounts payableDebitCommon stockDebit>CreditCreditCreditRetained earningsDebitCreditBalance110,000Balance70,000Balance385,000Balance550,000 CashAccounts receivableInventoryAccounts payableLong-term notes payableCommon stockPaid-in capital in excess of par - CommonRetained earningsTotalStep 1:Step 2Step 3:Cost of investments at December 31:Ontario Company stockVan Company stockTwinings CompanyTotal costFair value of investments at December 31:Ontario Company stockVan Company stockTwinings CompanyTotal fair valumThe year-end fair values per share are: Ontario Company, $27.00; Van Company, $49.50; and Twinings Company, $15.00. Calculatethe total cost and total fair value of the available-for-sale portfolio as of December 31, and calculate the amount of therequired year-end adjusting entry, if any.Account TitleDetermine what the unadjusted balance in the fair value adjustment equals:Determine what the adjusted balance in the fair value aquement accountshould equalApr 16) Purchased 4,000 shares of Ontario Company stock at $26 perIshareJul. 7) Purchased 2.500 shares of Van Company stock at $51 pershare.For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change wasreflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that thechange in total assets must agree with the change in total equity.Jul 20) Purchased 1.200 shares of Twinings Company stock at $18per shareAug 15) Received an $1.00 per share cash dividend on the OntarioCompany stockAug 28) Sold 2,400 shares of Ontario Company stock at $29 pershareDetermine the amount of the adjustment to the fair value aqusament accountrequired to get from Step 1 to Step 2:Oct. 1) Received a $3.10 per share cash dividend on the VanCompany sharesDec. 15) Received a $1.20 per share cash dividend on the remainingOntario Company sharesDec 31) Received a $2.50 per share cash dividend on the VanCompany sharesDec 31) Adjusted the securities to year-end fair valueTotalsof SharesTotal unrealized geindloss as of December 31:Change inChange in equity:As a directAs aTotal assets component of component of Total changestockholders in equityequitynet incomeS$Show less ADebit1,305,000110,00040,0001.455,000 $CreditFair value par share70.000340,000385,000110.000550.0001,455.000Dividend revenueTotal net incomeCostProve the accuracy of your responses on the Transaction Analysis tab by selecting the account titles reported on theincome statement or as a component of stockholders' equity.Fair ValueOn the transaction analysis tab, you indicated that total incomechanged bySelect the income statement account balances that prove this amount:Unrealized loss-IncomeGain on sale of stock investments$000

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Eco Corporation had no short-term…

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...

April 16	Purchased 4,000 shares of Ontario Company stock at $26 per share.
July 7	Purchased 2,500 shares of Van Company stock at $51 per share.
July 20	Purchased 1,200 shares of Twinings Company stock at $18 per share.
August 15	Received an $1.00 per share cash dividend on the Ontario Company stock.
August 28	Sold 2,400 shares of Ontario Company stock at $29 per share.
October 1	Received a $3.10 per share cash dividend on the Van Company shares.
December 15	Received a $1.20 per share cash dividend on the remaining Ontario Company shares.
December 31	Received a $2.50 per share cash dividend on the Van Company shares.