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On December 31, 2020, Ivanhoe Associates owned the following securities, held as a long-term investment. The...

On December 31, 2020, Ivanhoe 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.	2,000	$64,000
Wooderson Co.	5,200	36,400
Kitselton Co.	1,800	39,600

On December 31, 2020, the total fair value of the securities was equal to its cost. In 2021, the following transactions occurred:

Aug.	1	Received $0.50 per share cash dividend on Gehring Co. common stock.
Sept.	1	Sold 1,560 shares of Wooderson Co. common stock for cash at $6 per share.
Oct.	1	Sold 800 shares of Gehring Co. common stock for cash at $35 per share.
Nov.	1	Received $2 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 $2 per share annual cash dividend on Wooderson Co. common stock.

At December 31, the fair values per share of the common stocks were: Gehring Co. $34, Wooderson Co. $6, and Kitselton Co. $20.

Journalize the 2021 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. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31

Stock Investments
choose a transaction date Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal.	enter a debit amount	choose a transaction date Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal.
enter a debit balance	choose the end date of the accounting period Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal.

List of Accounts

Prepare the adjusting entry at December 31, 2021, to show the securities at fair value. (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	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Show the balance sheet presentation of the investments at December 31, 2021. At this date, Ivanhoe Associates has common stock $1,411,000 and retained earnings $1,156,000.

Ivanhoe Associates Balance Sheet (Partial) choose the accounting period December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021

					$enter a dollar amount

Expert Solution

ekkarill92 answered 9 months ago

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