Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and Equity Investments* 10,500 Xavier Corp. common shares 1,500 Young Inc. common shares 125,000 Zed Corp. common shares. Cost $171,675 78,000 41,500 Fair Value $152,250 74,400 37,100 *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 1,000 common shares of Young Inc. for $48,000. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 5,500 common shares of Allen Corp. for $330,000. The shares represent a 30% ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $3.00 per share. Aug.14 Sold the remaining Young Inc. shares at $32.00. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring 10,500 common shares at a total of $93,450. Johnson Inc. will se these shares in six to nine months. Dec. 30 Sold 10,500 shares of Xavier Corporation for $168,000. Dec. 31 Allen Corp. announced a net profit of $282,500 for the year. Required: Journalize the above transactions.

Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and Equity Investments* 10,500 Xavier Corp. common shares 1,500 Young Inc. common shares 125,000 Zed Corp. common shares. Cost $171,675 78,000 41,500 Fair Value $152,250 74,400 37,100 *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 1,000 common shares of Young Inc. for $48,000. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 5,500 common shares of Allen Corp. for $330,000. The shares represent a 30% ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $3.00 per share. Aug.14 Sold the remaining Young Inc. shares at $32.00. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring 10,500 common shares at a total of $93,450. Johnson Inc. will se these shares in six to nine months. Dec. 30 Sold 10,500 shares of Xavier Corporation for $168,000. Dec. 31 Allen Corp. announced a net profit of $282,500 for the year. Required: Journalize the above transactions.

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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