Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and Equity Investments* 10,600 Xavier Corp. common shares 1,550 Young Inc. common shares 126,000 Zed Corp. common shares Cost $173,310 80,600 41,800 Fair Value $153,700 76,880 37,400 *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 1,050 common shares of Young Inc. for $50,400. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 5,600 common shares of Allen Corp. for $336,000. The shares represent a 30% ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $3.10 per share. Aug.14 Sold the remaining Young Inc. shares at $32.10. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring.10,600 common shares at a total of $94,340. Johnson Inc. will sell these shares in six to nine months. Dec. 30 Sold 10,600 shares of Xavier Corporation for $169,600. Dec. 31 Allen Corp. announced a net profit of $283,000 for the year. Required: Journalize the above transactions. View transaction list
Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and Equity Investments* 10,600 Xavier Corp. common shares 1,550 Young Inc. common shares 126,000 Zed Corp. common shares Cost $173,310 80,600 41,800 Fair Value $153,700 76,880 37,400 *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 1,050 common shares of Young Inc. for $50,400. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 5,600 common shares of Allen Corp. for $336,000. The shares represent a 30% ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $3.10 per share. Aug.14 Sold the remaining Young Inc. shares at $32.10. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring.10,600 common shares at a total of $94,340. Johnson Inc. will sell these shares in six to nine months. Dec. 30 Sold 10,600 shares of Xavier Corporation for $169,600. Dec. 31 Allen Corp. announced a net profit of $283,000 for the year. Required: Journalize the above transactions. View transaction list
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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Transcribed Image Text:Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following:
Debt and Equity Investments*
10,600 Xavier Corp. common shares
1,550 Young Inc. common shares
126,000 Zed Corp. common shares
Cost
$173,310
80,600
41,800
Fair Value
$153,700
76,880
37,400
*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 1,050 common shares of Young Inc. for $50,400. Johnson Inc. planned to hold these shares for less than one year.
Mar. 3 Purchased 5,600 common shares of Allen Corp. for $336,000. The shares represent a 30% ownership in Allen Corp.
June 7 Received dividends from Allen Corp. at the rate of $3.10 per share.
Aug.14 Sold the remaining Young Inc. shares at $32.10.
Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring.10,600 common shares at a total of $94,340. Johnson Inc. will sell
these shares in six to nine months.
Dec. 30 Sold 10,600 shares of Xavier Corporation for $169,600.
Dec. 31 Allen Corp. announced a net profit of $283,000 for the year.
Required:
Journalize the above transactions.
View transaction list
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