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Crane, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 1,050 shares…
Crane, Inc. had the following equity investment portfolio at January 1, 2020.
|Evers Company||1,050 shares @ $15 each||$15,750|
|Rogers Company||890 shares @ $22 each||19,580|
|Chance Company||490 shares @ $8 each||3,920|
|Equity investments @ cost||39,250|
|Fair value adjustment||(7,510||)|
|Equity investments @ fair value||$31,740|
During 2020, the following transactions took place.
|1.||On March 1, Rogers Company paid a $2 per share dividend.|
|2.||On April 30, Crane, Inc. sold 300 shares of Chance Company for $12 per share.|
|3.||On May 15, Crane, Inc. purchased 90 more shares of Evers Company stock at $16 per share.|
|4.||At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $21, and Chance $7.|
During 2021, the following transactions took place.
|5.||On February 1, Crane, Inc. sold the remaining Chance shares for $7 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, 2021, the stocks had the following price per share values: Evers $19 and Rogers $23.|
A) Prepare journal entries for each of the above transactions
B)Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021.