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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.
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