Keitel Corp. had the following securities (all purchased in 2017) in its investment portfolio onDecember 31, 2017.5,000 Alpha common shares2,000 Beta preferred shares10,000 Omicron common sharesCost$55,500$571,200$250,200Market value, 12/31/2017$73,200$559.000$260,200In 2018, Keitel made the following changes to the portfolio:I On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of $600,2. On April 9, purcbased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080.3. On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of S1,200.On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta$300, Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI modelwithout recycling.A Prepare journal entries to record the sale of Alpha shares.3b. Prepare journal entries on December 31, 2018 to adjust the carrying (book) value of the equityportfolio.c. Alpha declarcd a dividend of S0.20 per share on April 1, 2018. Prepare the journal entry, Shouldthe dividend be booked to net income or OCI? Keitel Corp. had the following securities (all purchased in 2017) in its investment portfolio onDecember 31, 2017.5,000 Alpha common shares2,000 Beta preferred shares10,000 Omicron common sharesCost$55,500$571,200$250,200Market value, 12/31/2017$73,200$559.000$260,200In 2018, Keitel made the following changes to the portfolio:I On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of $600,2. On April 9, purcbased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080.3. On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of S1,200.On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta$300, Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI modelwithout recycling.A Prepare journal entries to record the sale of Alpha shares.3b. Prepare journal entries on December 31, 2018 to adjust the carrying (book) value of the equityportfolio.c. Alpha declarcd a dividend of S0.20 per share on April 1, 2018. Prepare the journal entry, Shouldthe dividend be booked to net income or OCI?

Equity Investment in FVOCI Investment which can be classified into two types FVPL and FVOCI and the…

In 2018, Keitel made the following changes to the portfolio: E On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of S600, 2. On April 9, purchased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080. 3 On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of $1,200, on shares for $10 per share less fees of $1,200 On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta $300; Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI model without recycling. Prepare journal entries to record the sale of Alpha shares

In 2018, Keitel made the following changes to the portfolio: E On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of S600, 2. On April 9, purchased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080. 3 On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of $1,200, on shares for $10 per share less fees of $1,200 On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta $300; Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI model without recycling. Prepare journal entries to record the sale of Alpha shares

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 16E

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On December 31, 2017, Nameless Inc. provided you with the following information regarding its trading securities. December 31, 2017 Investments (Trading) Cost Fair Value SKN Inc. stock $ 40,000 $ 46,000 Derby Co. stock 101,000 99,500 Google Corp. stock 31,000 34,500 Total of portfolio $172,000 $ 180,000 All of the securities were purchased during 2017 and < 20% of total share of the company. During 2018, Nameless sold its Google Corp. stock for $33,200. The fair value of the stock on December 31, 2018, was: SKN Inc. stock—$47,600; Derby Co. stock—$95,400. (3a) Prepare the adjusting journal entry needed on December 31, 2017. (3b) Prepare the journal entry to record the sale of the Google Corp. stock during 2018. (3c) Prepare the adjusting journal entry needed on December 31, 2018.
(Equity Investments) Castleman Holdings, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 1,000 shares @ $15 each $15,000 Rogers Company 900 shares @ $20 each 18,000 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 37,500 Fair value adjustment (7,500) Equity investments @ fair value $30,000 During 2017, the following transactions took place.1. On March 1, Rogers Company paid a $2 per share dividend.2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for $11 per share.3. On May 15, Castleman Holdings, Inc. purchased 100 more shares of Evers Company stock at $16 per share.4. At December 31, 2017, the stocks had the following price per share values: Evers $17, Rogers $19, and Chance $8.During 2018, the following transactions took place.5. On February 1, Castleman Holdings, Inc. sold the remaining Chance shares for $8 per share.6. On March 1, Rogers Company paid a $2 per share dividend.7. On…
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(Equity Securities Entries) McElroy Company has the following portfolio of investment securities at September 30, 2017, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2017, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2017. The December 31, 2017, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. InstructionsPrepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2017.
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 970 shares @ $14 each $13,580 Rogers Company 910 shares @ $18 each 16,380 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 34,460 Fair value adjustment (7,840 ) Equity investments @ fair value $26,620 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share. 3. On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share. 6. On March 1, Rogers Company paid a $2 per share dividend.…
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2…
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