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Equity Investments Available-for -Sale Castleman Holdings Inc had the following available for-sale investment portfolio at January 1 2014 Evers Company

(Equity Investments— vailable-fo -Sale) Castleman Holdings, Inc. had the following available- for-sale investment portfolio at January 1, 2014.

 

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 (available-for-sale) @ cost

 

37,500

Fair value adjustment (available-for-sale)

 

(7,500)

Equity investments (available-for-sale) @ fair value

 

$30,000

 

During 2014, 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 sha es of Chance Company for $ 1 per sha e.

3. On May 15, Castleman Holdings, Inc. pu chased 100 mo sha es of Evers Co. stock at $16 per sha e.

4. At December 31, 2014, the stocks had the following price per sha values: Evers $17, Rogers $19,

and Chance $8.

During 2015, the following transactions took place.

5. On February 1, Castleman Holdings, Inc. sold the remaining Chance shares for $8 per share.

6. On Ma ch 1, Rogers Company paid a $2 per sha e dividend.

7. On December 21, Evers Company decla ed cash dividend of $3 per sha to be paid in the next

month.

8. Decembe 31 2015 th stock ha th followin pric pe sha values Ever $1 an Roger $21.

 

Instructions

(a) epa e journal entries for each of the above transactions.

(b) epa partial balance sheet showing the investment- elated amounts to be eported at December

31, 2014 and 2015.

Jun 18 2020 View more View Less

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