| P17-11 (Equity InvestmentsAvailable-for-Sale) Castleman Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2014. |
| 1,000 | shares of Evers Company at | $15.00 | per share | $15,000 |
| 900 | shares of Rogers Company at | $20.00 | per share | $18,000 |
| 500 | shares of Chance Company at | $9.00 | per share | $4,500 |
| | Available-for-sale securities at cost: | $37,500 |
| | Securities fair value adjustment-Available-for-sale - Credit balance | ($7,500) |
| | Available-for-sale securities at fair value: | $30,000 |
| |
| During 2014, the following transactions took place: |
| 1. On March 1, Rogers Company paid a | $2.00 | per share dividend. |
| 2. On April 30, Castleman Holdings, Inc. sold | 300 | shares of Chance Company |
| for | $11.00 | per share |
| 3. On May 15, Castleman Holding, Inc. purchased | 100 | more shares of Evers Co. |
| stock at | $16.00 | per share |
| 4. At December 31, 2014, the stocks had the following price per share values: |
| | Evers Company | $17.00 | |
| | Rogers Company | $19.00 | |
| | Chance Company | $8.00 | |
| During 2015 the following transactions took place: |
| 5. On February 1, Castleman Holding, Inc. sold the remaining Chance shares for | $8 |
| per share. |
| 6. On March 1, Rogers Company paid a | $2 | per share dividend. |
| 7. On December 21, Evers Company declared a cash dividend of | $3 | per share to be |
| paid in the next month. |
| 8. At December 31, 2015, the stocks had the following price per share values: |
| | Evers Company | $19.00 | |
| | Rogers Company | $21.00 | |
| |
| Instructions: |
| (a) Prepare journal entries for each of the above transactions. |
| |
| 1 | Mar 1, 14 | Account Title | Amount | |
| Dividend Revenue | | Amount |
| |
| 2 | Apr 30, 14 | Account Title | Amount | |
| Account Title | | Amount |
| Account Title | | Amount |
| |
| 3 | May 15, 14 | Account Title | Amount | |
| Account Title | | Amount |
| |
| 4 | Dec 31, 14 | Account Title | Amount | |
| Account Title | | Amount |
| |
| | Security | | Cost | Fair Value | Unrealized Gain (Loss) |
| | Evers Company | Formula | |
| | Calculation as desired | | Formula | Formula |
| | Rogers Company | Formula | |
| | Calculation as desired | | Formula | Formula |
| | Chance Company | Formula | |
| | Calculation as desired | | Formula | Formula |
| | Total of Portfolio | Formula | Formula | Formula |
| | Previous securities fair value adjustment bal.Cr. | | Amount |
| | Securities fair value adjustmentDr. | | Formula |
| |
| 5 | Feb 1, 14 | Account Title | Amount | |
| Account Title | Amount | |
| Account Title | | Amount |
| |
| 6 | Mar 1, 14 | Account Title | Amount | |
| Account Title | | Amount |
| |
| 7 | Dec 21, 14 | Account Title | Amount | |
| Account Title | | Amount |
| |
| 8 | Dec 31, 14 | Account Title | Amount | |
| Account Title | | Amount |
| |
| | Security | | Cost | Fair Value | Unrealized Gain (Loss) |
| | Evers Company | Formula | |
| | Calculation as desired | | Formula | Formula |
| | Rogers Company | Formula | |
| | Calculation as desired | | Formula | Formula |
| | Total of Portfolio | Formula | Formula | Formula |
| | Previous securities fair value adjustment bal.Cr. | | Amount |
| | Securities fair value adjustmentDr. | | Formula |
| |
| (b) Prepare a partial balance sheet showing the Investments account at December 31, 2014, and 2015. |
| |
| Partial Balance Sheet as of: | December 31, 2014 | December 31, 2015 |
| Current Assets - Dividends Receivable | Amount | Amount |
| Investments: |
| Available-for-sale securities, at fair value | Amount | Amount |
| Stockholders' equity: |
| Accumulated other comprehensive gain | Amount | Amount |
