Whispering, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 1,030 shares...

Whispering, Inc. had the following equity investment portfolio at January 1, 2017.

Evers Company	1,030 shares @ $14 each	$14,420
Rogers Company	910 shares @ $19 each	17,290
Chance Company	510 shares @ $9 each	4,590
Equity investments @ cost		36,300
Fair value adjustment		(7,350	)
Equity investments @ fair value		$28,950

During 2017, the following transactions took place.

1.		On March 1, Rogers Company paid a $2 per share dividend.
2.		On April 30, Whispering, Inc. sold 280 shares of Chance Company for $10 per share.
3.		On May 15, Whispering, Inc. purchased 110 more shares of Evers Company stock at $15 per share.
4.		At December 31, 2017, the stocks had the following price per share values: Evers $16, Rogers $18, and Chance $8.

During 2018, the following transactions took place.

5.		On February 1, Whispering, Inc. sold the remaining Chance shares for $8 per share.
6.		On March 1, Rogers Company paid a $2 per share dividend.
7.		On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.
8.		At December 31, 2018, the stocks had the following price per share values: Evers $18 and Rogers $20.

Prepare journal entries for each of the above transactions.

Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2017 and 2018.

Expert Solution

Year 2017
Equity investments @ cost	Evers	Rogers	Chance	Total
Equity investments @ cost at beginning Value	14,420	17,290	4,590	36,300
Less: cost of share sold			(2,520)	(2,520)
Add: Additional Purchase	1,650			1,650
Equity investments @ cost at Dec 31, 2017	$ 16,070	$ 17,290	$ 2,070	$ 35,430

Equity investments @ fair	Evers (1030+110)	Rogers	Chance (510-280)	Total
Number of share	1,140	910	230
Multiply: Market price per share	16	18	8
Equity investments @ fair	18,240	16,380	1,840	$ 36,460

Equity investments @ cost				$ 35,430
Equity investments @ fair value				$ 36,460
Increase in Fair value adjustment (36460-35430)				$ 1,030
Less: negative Fair value adjustment at beginning of 2017 [-(-7350) = 7350]				$ 7,350
Adjustment entry for Fair value				$ 8,380

Year 2018
Equity investments @ cost	Evers	Rogers	Chance	Total
Equity investments @ cost at Dec 31, 2017	16,070	17,290	2,070	35,430
Less: cost of share sold			(2,070)	(2,070)
Add: Additional Purchase	-			-
Equity investments @ cost at Dec 31, 2018	$ 16,070	$ 17,290	$ -	$ 33,360

Equity investments @ fair	Evers	Rogers	Chance (230-230)	Total
Number of share	1,140	910	-
Multiply: Market price per share	18	20	-
Equity investments @ fair	20,520	18,200	-	$ 38,720

Equity investments @ cost				$ 33,360
Equity investments @ fair value				$ 38,720
Increase in Fair value adjustment (38720-33360)				$ 5,360
Less: Fair value adjustment at beginning of 2018				(1,030)
Adjustment entry for Fair value				$ 4,330

Whispering, Inc.
Transaction	Date	General Journal	Debit	Credit
1	March 1, 2017	Cash	1,820
		Dividend Income		1,820
		(To record dividend received from Rogers company) (910*2)

2	April 30, 2017	Cash (280*10)	2,800
		Gain on sales of investment (280*(10-9))		280
		Investment in equity portfolio (280*9)		2,520
		(To record sale share of Chance.)

3	May 15, 2017	Investment in equity portfolio	1,650
		Cash		1,650
		(To record purchase of Evers shares.) (110*15)

4	December 31, 2017	Investment in equity portfolio	8,380
		Fair value adjustment		8,380
		(To record entry for Fair value adjustment.)

5	February 1, 2018	Cash (230*8)	1,840
		Loss on sales of investment (230*(9-8))	230
		Investment in equity portfolio (230*9)		2,070
		(To record sale share of Chance.)

6	March 1, 2018	Cash	1,820
		Dividend Income		1,820
		(To record dividend received from Rogers company) (910*2)

7	December 21, 2018	Dividend Receivable	3,420
		Dividend Income		3,420
		(To record dividend declared but to be received in next month from Evers company) (1140*3)

8	December 31, 2018	Investment in equity portfolio	4,330
		Fair value adjustment		4,330
		(To record entry for Fair value adjustment.)

Whispering, Inc.
Partial Balance sheet
As at December 31, 2017
Investment @ cost	35,430
Fair value adjustment	1,030
Investment value Reported In the Balance sheet	36,460

Whispering, Inc.
Partial Balance sheet
As at December 31, 2018
Investment @ cost	33,360
Fair value adjustment	5,360
Investment value Reported In the Balance sheet	38,720
Dividend Receivable	3,420

ekkarill92 answered 1 month ago

Culver, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 990 shares...

Culver, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 990 shares @ $14 each $13,860 Rogers Company 890 shares @ $19 each 16,910 Chance Company 480 shares @ $10 each 4,800 Equity investments @ cost 35,570 Fair value adjustment (7,590 ) Equity investments @ fair value $27,980 During 2017, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Culver, Inc. sold 310 shares...

Grouper, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 1,050 shares...

Grouper, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 1,050 shares @ $16 each $16,800 Rogers Company 860 shares @ $21 each 18,060 Chance Company 510 shares @ $9 each 4,590 Equity investments @ cost 39,450 Fair value adjustment (7,290 ) Equity investments @ fair value $32,160 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Grouper, Inc. sold 310 shares...

Problem 17-10 (Part Level Submission) Bridgeport, Inc. had the following equity investment portfolio at January 1,...

Problem 17-10 (Part Level Submission) Bridgeport, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 1,050 shares @ $15 each $15,750 Rogers Company 890 shares @ $22 each 19,580 Chance Company 490 shares @ $8 each 3,920 Equity investments @ cost 39,250 Fair value adjustment (7,510 ) Equity investments @ fair value $31,740 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30,...

On January 1, 2017, Evers Company purchased the following two machines for use in its production...

On January 1, 2017, Evers Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $52,000. Related expenditures included: sales tax $3,100, shipping costs $200, insurance during shipping $120, installation and testing costs $50, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Evers estimates that the useful life of the machine is 5 years with a $5,500 salvage value...

B. Castleman Holdings had the following trading equity investment portfolio on January 1, 2019: --------------------------------------------Cost ------Fair...

B. Castleman Holdings had the following trading equity investment portfolio on January 1, 2019: --------------------------------------------Cost ------Fair Value 1,000 shares of Evers Corp. ---$15,000 ------$15,700 900 shares of Rogers Corp. ----18,000 --------16,800 500 shares of Chance Corp. ----4,500 ----------3,000 ----------------------------------------$37,500 -------$35,500 In 2019, Castleman Holdings completed the following investment transactions: March 3 Sold the 500 shares of Chance Corp., @ $7.5 less fees of $65. April 15 Bought 200 more shares of Evers Corp., @ $16.5 plus fees of $150. August...

Stellar Corp. had the following shareholders’ equity on January 1, 2017: Common shares, unlimited number authorized,...

Stellar Corp. had the following shareholders’ equity on January 1, 2017: Common shares, unlimited number authorized, 100,000 shares issued and outstanding $ 290,000 Contributed surplus 309,000 Retained earnings 2,400,000 Total shareholders’ equity $ 2,999,000 The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Stellar prepares financial statements in accordance with ASPE. The following transactions occurred, in the order given, during 2017. 1. Subscriptions were sold for 10,700 common shares at $22...

On January 1, 2017, Conway Ltd. had the following shareholders' equity accounts: Common shares, unlimited number...

On January 1, 2017, Conway Ltd. had the following shareholders' equity accounts: Common shares, unlimited number of shares authorized, 1.5 million issued - $1,650,000 Retained earnings- 550,000 It was also authorized to issue an unlimited number of $6 noncumulative preferred shares. During 2017, the corporation had the following transactions and events related to its shareholders' equity: Jan 2 Issued 100,000 preferred shares at $66 per share March 31 Paid quarterly dividend to preferred shareholders April 18 Issued 250,000 common shares...

On January 1, 2017, Thomson Inc. had the following account balances in its shareholders' equity accounts....

On January 1, 2017, Thomson Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 350,000 shares issued of which 20,000 Shares being held as treasury stock $350,000 Paid-in capital excess of par, common 500,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Paid-in capital excess of par, preferred 100,000 Retained earnings 2,000,000 Treasury stock, at cost, 20,000 shares 60,000 During 2017, Thomson Inc. had several transactions relating to common stock. 2/10...

The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred...

The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized) $279,000 Common Stock ($5 stated value, 306,000 shares authorized) 1,274,999 Paid-in Capital in Excess of Par Value—Preferred Stock 13,950 Paid-in Capital in Excess of Stated Value—Common Stock 489,600 Retained Earnings 699,500 Treasury Stock (4,650 common shares) 37,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,860...

Swifty Company had the following stockholders’ equity as of January 1, 2017. Common stock, $5 par...

Swifty Company had the following stockholders’ equity as of January 1, 2017. Common stock, $5 par value, 18,400 shares issued $92,000 Paid-in capital in excess of par—common stock 295,000 Retained earnings 313,000 Total stockholders’ equity $700,000 During 2017, the following transactions occurred. Feb. 1 Swifty repurchased 1,970 shares of treasury stock at a price of $20 per share. Mar. 1 770 shares of treasury stock repurchased above were reissued at $18 per share. Mar. 18 510 shares of treasury stock...

Question