Flint Corp. has the following securities (all purchased in 2023) in its investment portfolio on December 31, 2023: 2,570 Anderson Corp. common shares, which cost $49,344; 10,700 Munter Ltd. common shares, which cost $580,700; and 6,700 King Corp. preferred shares, which cost $256,400. Their fair values at the end of 2023 were as follows: Anderson $50,980; Munter $570,200; and King $256,500. In 2024, Flint completed the following transactions: On January 15, sold 2,570 Anderson common shares at $21 per share less fees of $2,290. 2. On April 17, purchased 1,350 Castle Ltd. common shares at $34.20 per share plus fees of $2,120. 1. The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2024, the fair values per share of the securities were as follows: Munter $68; King $26; and Castle $22. Flint's accounting supervisor tells you that all these securities have fair values that can be readily determined, but the company is not likely to actively trade them.Management accounts for them using the FV-OCI method without recycling. Any gains or losses are reclassified to Retained Earnings on disposition of the investment. Ignore income taxes.
Flint Corp. has the following securities (all purchased in 2023) in its investment portfolio on December 31, 2023: 2,570 Anderson Corp. common shares, which cost $49,344; 10,700 Munter Ltd. common shares, which cost $580,700; and 6,700 King Corp. preferred shares, which cost $256,400. Their fair values at the end of 2023 were as follows: Anderson $50,980; Munter $570,200; and King $256,500. In 2024, Flint completed the following transactions: On January 15, sold 2,570 Anderson common shares at $21 per share less fees of $2,290. 2. On April 17, purchased 1,350 Castle Ltd. common shares at $34.20 per share plus fees of $2,120. 1. The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2024, the fair values per share of the securities were as follows: Munter $68; King $26; and Castle $22. Flint's accounting supervisor tells you that all these securities have fair values that can be readily determined, but the company is not likely to actively trade them.Management accounts for them using the FV-OCI method without recycling. Any gains or losses are reclassified to Retained Earnings on disposition of the investment. Ignore income taxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flint Corp. has the following securities (all purchased in 2023) in its investment portfolio on December 31, 2023: 2,570 Anderson
Corp.common shares, which cost $49,344; 10,700 Munter Ltd. common shares, which cost $580,700; and 6,700 King Corp. preferred
shares, which cost $256,400. Their fair values at the end of 2023 were as follows: Anderson $50,980; Munter $570,200; and King
$256,500.
In 2024, Flint completed the following transactions:
On January 15, sold 2,570 Anderson common shares at $21 per share less fees of $2,290.
2. On April 17, purchased 1,350 Castle Ltd. common shares at $34.20 per share plus fees of $2,120.
1.
The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of
investments. On December 31, 2024, the fair values per share of the securities were as follows: Munter $68; King $26; and Castle
$22. Flint's accounting supervisor tells you that all these securities have fair values that can be readily determined, but the company is
not likely to actively trade them.Management accounts for them using the FV-OCI method without recycling. Any gains or losses are
reclassified to Retained Earnings on disposition of the investment. Ignore income taxes.
Transcribed Image Text:Prepare the entries for the sale of the Anderson investment on January 15, 2024. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. List all debit entries before credit entries.)
Date Account Titles and Explanation
Jan. 15
Jan. 15
Jan. 15
(To adjust to fair value at date of disposal)
(To record disposal)
(To reclassify holding gain)
Debit
Credit
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