90.2K

Verified Solution

Link Copied!

Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: The fair value adjustments were recorded on December 31,2022. Johnson had no other debt and equity investments at December 31,2022 , other than those shown above. During 2023 , Johnson engaged in the following transactions: 2023 Jan.17 Sold 1,150 common shares of Young Inc. for $55,200. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 5,800 common shares of Allen Corp. for $348,000. The shares represent a 30 ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $3.30 per share. Aug.14 Sold the remaining Young Inc. shares at $32.30. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring 10,800 common shares at a total of $96,120. Johnson Inc. will sell these shares in six to nine months. Dec. 30 Sold 10,800 shares of Xavier Corporation for $172,800. Dec.31 Allen Corp. announced a net profit of $284,000 for the year. Required: Journalize the above transactions. Required: Journalize the above transactions. 1 Record the sale of equity investment. 2 Record the purchase of 30% interest for $348,000. 3 Record the collection of dividends from strategic investment. 4 Record the sale of equity investment. 5 Record the purchase of 10,800 shares. 6 Record the sale of 10,800 shares. 7 Record the share of profits in investment in associat Note : = journal entry has been entered Analysis Component: Assume the Allen Corp. shares were sold on January 16,2024 , for $372,000. Calculate the investment income or loss and select whether it is unrealized/realized

Answer & Explanation Solved by verified expert

See Answer