Question

On December 31, 2015, Turnball Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.

Common Stock
Shares
Cost
Gehring Co. 1,940 $58,200
Wooderson Co. 4,830 38,640
Kitselton Co. 1,600 28,800

On December 31, 2015, the total fair value of the securities was equal to its cost. In 2016, the following transactions occurred.

July 1 Received $1 per share semiannual cash dividend on Wooderson Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on Gehring Co. common stock.
Sept. 1 Sold 1,449 shares of Wooderson Co. common stock for cash at $7 per share.
Oct. 1 Sold 776 shares of Gehring Co. common stock for cash at $33 per share.
Nov. 1 Received $1 per share cash dividend on Kitselton Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on Gehring Co. common stock.
Dec. 31 Received $1 per share semiannual cash dividend on Wooderson Co. common stock.

At December 31, the fair values per share of the common stocks were: Gehring Co. $32, Wooderson Co. $7, and Kitselton Co. $16.

Journalize the 2016 transactions and post to the account Stock Investments. (Use the T-account form.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31

Stock Investments

Jan. 1 Bal.
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31
Dec. 31 Bal.

Jan. 1 Bal.
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31
Dec. 31 Bal.

Jan. 1 Bal.
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31
Dec. 31 Bal.

Jan. 1 Bal.
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31
Dec. 31 Bal.

Jan. 1 Bal.
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31
Dec. 31 Bal.

Jan. 1 Bal.
July 1
Aug. 1
Sept. 1
Oct. 1
Nov. 1
Dec. 15
Dec. 31
Dec. 31 Bal.

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Prepare the adjusting entry at December 31, 2016, to show the securities at fair value. The stock should be classified as available-for-sale securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31

SHOW LIST OF ACCOUNTS
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Show the balance sheet presentation of the investments at December 31, 2016. At this date, Turnball Associates has common stock $1,545,500 and retained earnings $1,129,200.

Turnball Associates
Balance Sheet (Partial)
December 31, 2016

Total Assets
Stockholders' Equity
Total Property, Plant and Equipment
Retained Earnings
Unrealized Loss on Available-for-Sale Securities
Total Current Assets
Total Intangible Assets
Total Current Liabilities
Property, Plant and Equipment
Total Liabilities
Current Assets
Total Liabilities and Stockholders' Equity
Total Long-Term Investments
Common Stock
Long-Term Liabilities
Total Long-Term Liabilities
Current Liabilities
Total Paid-in Capital and Retained Earnings
Total Stockholders' Equity
Intangible Assets
Investment in Stock of less than 20% Owned Companies
Investments
    
Stockholders' Equity    
Unrealized Loss on Available-for-Sale Securities    
Total Assets    
Current Assets    
Total Long-Term Investments    
Common Stock    
Investment in Stock of less than 20% Owned Companies    
Investments    
Current Liabilities    
Total Paid-in Capital and Retained Earnings    
Total Property, Plant and Equipment    
Long-Term Liabilities    
Intangible Assets    
Property, Plant and Equipment    
Retained Earnings    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Long-Term Liabilities    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Stockholders' Equity    
$

Total Current Assets
Total Liabilities
Total Current Liabilities
Current Liabilities
Investment in Stock of less than 20% Owned Companies
Total Liabilities and Stockholders' Equity
Total Paid-in Capital and Retained Earnings
Investments
Retained Earnings
Unrealized Loss on Available-for-Sale Securities
Total Long-Term Investments
Stockholders' Equity
Total Long-Term Liabilities
Long-Term Liabilities
Total Intangible Assets
Total Property, Plant and Equipment
Total Stockholders' Equity
Common Stock
Property, Plant and Equipment
Total Assets
Current Assets
Intangible Assets
    
Total Long-Term Liabilities    
Total Current Liabilities    
Total Intangible Assets    
Total Long-Term Investments    
Investments    
Total Property, Plant and Equipment    
Intangible Assets    
Total Liabilities    
Total Paid-in Capital and Retained Earnings    
Common Stock    
Total Stockholders' Equity    
Current Liabilities    
Retained Earnings    
Property, Plant and Equipment    
Total Liabilities and Stockholders' Equity    
Long-Term Liabilities    
Unrealized Loss on Available-for-Sale Securities    
Current Assets    
Stockholders' Equity    
Investment in Stock of less than 20% Owned Companies    
Total Assets    
Total Current Assets    
$
    
Total Long-Term Investments    
Total Property, Plant and Equipment    
Current Liabilities    
Total Stockholders' Equity    
Investment in Stock of less than 20% Owned Companies    
Total Long-Term Liabilities    
Investments    
Total Intangible Assets    
Stockholders' Equity    
Retained Earnings    
Common Stock    
Current Assets    
Total Paid-in Capital and Retained Earnings    
Total Assets    
Total Current Assets    
Long-Term Liabilities    
Unrealized Loss on Available-for-Sale Securities    
Property, Plant and Equipment    
Intangible Assets    
Total Current Liabilities    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
    
Long-Term Liabilities    
Total Intangible Assets    
Total Liabilities    
Investment in Stock of less than 20% Owned Companies    
Total Long-Term Liabilities    
Total Current Assets    
Current Liabilities    
Stockholders' Equity    
Investments    
Intangible Assets    
Property, Plant and Equipment    
Total Liabilities and Stockholders' Equity    
Current Assets    
Total Long-Term Investments    
Total Assets    
Total Property, Plant and Equipment    
Total Current Liabilities    
Total Paid-in Capital and Retained Earnings    
Retained Earnings    
Total Stockholders' Equity    
Unrealized Loss on Available-for-Sale Securities    
Common Stock    
    
Add    
Less    
:

Total Paid-in Capital and Retained Earnings
Intangible Assets
Total Liabilities
Total Stockholders' Equity
Total Long-Term Investments
Total Current Liabilities
Total Long-Term Liabilities
Investment in Stock of less than 20% Owned Companies
Unrealized Loss on Available-for-Sale Securities
Total Intangible Assets
Total Liabilities and Stockholders' Equity
Common Stock
Current Assets
Total Property, Plant and Equipment
Current Liabilities
Investments
Retained Earnings
Long-Term Liabilities
Stockholders' Equity
Property, Plant and Equipment
Total Assets
Total Current Assets
    
Total Stockholders' Equity    
Stockholders' Equity    
Property, Plant and Equipment    
Retained Earnings    
Total Long-Term Investments    
Total Assets    
Unrealized Loss on Available-for-Sale Securities    
Total Current Assets    
Total Current Liabilities    
Total Liabilities and Stockholders' Equity    
Total Intangible Assets    
Total Property, Plant and Equipment    
Total Liabilities    
Current Liabilities    
Investments    
Total Long-Term Liabilities    
Total Paid-in Capital and Retained Earnings    
Long-Term Liabilities    
Common Stock    
Current Assets    
Intangible Assets    
Investment in Stock of less than 20% Owned Companies    
$

SHOW LIST OF ACCOUNTS

Answer 1