P17-11 (Equity Investments—Available-for-Sale) Castleman Holdings, Inc. had the
ID: 2496793 • Letter: P
Question
P17-11 (Equity Investments—Available-for-Sale) Castleman Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2014.
During 2014, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for $11 per share. 3. On May 15, Castleman Holdings, Inc. purchased 100 more shares of Evers Co. stock at $16 per share. 4. At December 31, 2014, the stocks had the following price per share values: Evers $17, Rogers $19, and Chance $8.
Explanation / Answer
Journal entries
Sec
Cost
Fair Value
UGL
Evers co($15000+$1600)
16,600.00
(1000sh +100sh)*17 per sh
18,700.00
2,100.00
Rogers company($18000)
18,000.00
(900sh*19 per sh)
17,100.00
(900.00)
Chance company($4500-$2700)
1,800.00
(500sh-300sh)*8 per sh
1,600.00
(200.00)
Total portfolio
36,400.00
37,400.00
1,000.00
Prev securities at FV adj-Cr
(7,500.00)
Sec at FV-Dr
8,500.00
Sec
Cost
Fair Value
UGL
Evers co($15000+$1600)
16,600.00
(1000sh +100sh)*19 per sh
20,900.00
4,300.00
Rogers company($18000)
18,000.00
(900sh*21 per sh)
18,900.00
900.00
Total portfolio
34,600.00
39,800.00
5,200.00
Prev securities at FV adj-Cr
1,000.00
Sec at FV-Dr
4,200.00
Prepare partial Bal sheet as of dec 31,2014 and 2015
Partial Balance sheet as of:
Dec31,2014
Dec31,2015
Current Assets-Div rec
$ -
$ 3,300.00
Investments:
AFS, at fair value
$37,400.00
$39,800.00
Stockholder's eq:
Accumulated other comprehensive gain
$ 100.00
$ 5,200.00
1 Dr Cash $1,800.00 Cr Div.revenue($2*900 share) $1,800.00 12-Mar 2 Dr Cash $1,800.00 Cr Div.revenue($2*900 share) $1,800.00 30-Apr 3 Dr Cash $3,300.00 Cr Gain on sale of inv($11-9)*300 sh $ 600.00 Cr Equity Investment(AFS) $2,700.00 15-May 4 Dr Equity Investment(AFS) $1,600.00 Cr Cash($16*100sh) $1,600.00 31-Dec 5 Dr Fair value adj $8,500.00 Cr Ugl-Equity $8,500.00Related Questions
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