Bonita, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 960 shares...

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

Evers Company	960 shares @ $14 each	$13,440
Rogers Company	880 shares @ $20 each	17,600
Chance Company	520 shares @ $10 each	5,200
Equity investments @ cost		36,240
Fair value adjustment		(7,300	)
Equity investments @ fair value		$28,940

During 2017, the following transactions took place.

1.		On March 1, Rogers Company paid a $2 per share dividend.
2.		On April 30, Bonita, Inc. sold 320 shares of Chance Company for $11 per share.
3.		On May 15, Bonita, Inc. purchased 100 more shares of Evers Company stock at $17 per share.
4.		At December 31, 2017, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $9.

During 2018, the following transactions took place.

5.		On February 1, Bonita, Inc. sold the remaining Chance shares for $9 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 $20 and Rogers $21.

Prepare journal entries for each of the above transactions.

Expert Solution

	2017		Debit	Credit
1	Mar-01	Cash	$ 1,760.00
		Dividend Revenue		$ 1,760.00

2	Apr-30	Cash	$ 3,520.00
		Gain on Sale of Invoice	$ 320.00
		Equity Investments(Avail. For Sale)		$ 3,200.00

3	May-15	Equity Investments	$ 1,700.00
		Cash		$ 1,700.00

4	Dec-31	Fair Value Adjustments (Avail for Sale)	$ 10,160.00
		Unrealized Holding (Gain or Loss)Equity		$ 10,160.00

	2018
5	Feb-01	Cash	$ 1,800.00
		Loss on Sale of Invoice	$ 200.00
		Equity Investments(Avail. For Sale)		$ 2,000.00

6	Mar-01	Cash	$ 1,760.00
		Dividend Revenue		$ 1,760.00

7	Dec-21	Dividends Receivable	3180
		Dividend Revenue		3180

8	Dec-31	Fair Value Adjustments (Avail for Sale)	$ 14,240.00
		Unrealized Holding (Gain or Loss)Equity		$ 14,240.00

Working Notes-

	Cost	Fair Value	Unrealized Gain (Loss)
Evers Company	$ 15,140.00	$ 19,080.00	$ 3,940.00
Rogers Company	$ 17,600.00	$ 16,720.00	$ (880.00)
Chance Company	$ 2,000.00	$ 1,800.00	$ (200.00)
Total	$ 34,740.00	$ 37,600.00	$ 2,860.00
Previous securities fair value adjustment bal.—Cr			$ (7,300.00)
Securities fair value adjustment—Dr.			$ 10,160.00

	Cost	Fair Value	Unrealized Gain (Loss)
Evers Company	$ 15,140.00	$ 21,200.00	$ 6,060.00
Rogers Company	$ 17,600.00	$ 18,480.00	$ 880.00
Total	$ 32,740.00	$ 39,680.00	$ 6,940.00
Previous securities fair value adjustment bal.—Cr			$ (7,300.00)
Securities fair value adjustment—Dr.			$ 14,240.00

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