The following are in Rodriguez”s Company”s portfolio of long-term available-for-sale securities at December 31, 2014.
|
Cost |
|
|
700 shares of Parra Corporation common stock |
$35,000 |
|
900 shares of Robison Corporation common stock |
42,000 |
|
800 shares of Vega Corporation preferred stock |
22,400 |
On December 31, the total cost of the portfolio equaled total fair value. Rodriguez”s Company had the following transactions related to the securities during 2015.
|
7 |
Sold 700 shares of Parra Corporation common stock at $55 per share. |
|
|
10 |
Purchased 300 shares, $70 par value common stock of Younker Corporation at $78 per share. |
|
|
26 |
Received a cash dividend of $1.15 per share on Robison Corporation common stock. |
|
|
2 |
Received cash dividends of $0.40 per share on Vega Corporation preferred stock. |
|
|
10 |
Sold all 800 shares of Vega Corporation preferred stock at $26 per share. |
|
|
July |
1 |
Received a cash dividend of $1.00 per share on Robison Corporation common stock. |
|
1 |
Purchased an additional 800 shares of the $70 par value common stock of Younker Corporation at $75 per share. |
|
|
15 |
Received a cash dividend of $1.50 per share on Younker Corporation common stock. |
At December 31, 2015, the fair values of the securities were:
|
Robison Corporation common stock |
$48 per share |
|
Younker Corporation common stock |
$72 per share |
Instructions
(a)Prepare journal entries to record the transactions.
(b)Post to the investment accounts. (Use T-accounts.)
(c)Prepare the adjusting entry at December 31, 2015, to report the portfolio at fair value.
(d)Show the balance sheet presentation at December 31, 2015, for the investment-related accounts.