Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,600 shares of Hunt Corporation at $22 per share. September 5 Received a $2 cash dividend for each share of Hunt Corporation. September 27 Purchased 3,300 shares of HCA at $25 per share. October 3 Sold 1,600 shares of Hunt at $17 per share. October 30 Purchased 1,500 shares of Black & Decker at $53 per share. December 17 Received a $3 cash dividend for each share of Black & Decker. December 31 Fair value of the short-term stock investments is $167,000.=
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,600 shares of Hunt Corporation at $22 per share. September 5 Received a $2 cash dividend for each share of Hunt Corporation. September 27 Purchased 3,300 shares of HCA at $25 per share. October 3 Sold 1,600 shares of Hunt at $17 per share. October 30 Purchased 1,500 shares of Black & Decker at $53 per share. December 17 Received a $3 cash dividend for each share of Black & Decker. December 31 Fair value of the short-term stock investments is $167,000.=
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare
| July 22 | Purchased 1,600 shares of Hunt Corporation at $22 per share. |
|---|---|
| September 5 | Received a $2 cash dividend for each share of Hunt Corporation. |
| September 27 | Purchased 3,300 shares of HCA at $25 per share. |
| October 3 | Sold 1,600 shares of Hunt at $17 per share. |
| October 30 | Purchased 1,500 shares of Black & Decker at $53 per share. |
| December 17 | Received a $3 cash dividend for each share of Black & Decker. |
| December 31 | Fair value of the short-term stock investments is $167,000.= |
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