Compute the unrealized gains or losses.Unrealized2$Prepare the adjusting entry for Larkspur on December 31, 2021. (Credit account titles are automatically indented when amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditDec. 31,Fair Value Adjustment2021Unrealized Holding Gain or Loss - Income Larkspur Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in2020): (1) 2,800 shares of Anderson Co. common stock which cost $50,400, (2) 10,800 shares of Munter Ltd. common stock whichcost $604,800, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account showsa credit of $10,400 at the end of 2020.In 2021, Larkspur completed the following securities transactions.1.On January 15, sold 2,800 shares of Anderson's common stock at $20 per share less fees of $2,160.2.On April 17, purchased 900 shares of Castle's common stock at $33 per share plus fees of $2,030.On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $25. In addition, theaccounting supervisor of Larkspur told you that, even though all these securities have readily determinable fair values, Larkspur willnot actively trade these securities because the top management intends to hold them for more than one year.

Solution:- Given, Larkspur Company has the securities in its investment portfolio on December 31,…

Compute the unrealized gains or losses. Unrealized 2$ Prepare the adjusting entry for Larkspur on December 31, 2021. (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, Fair Value Adjustment 2021 Unrealized Holding Gain or Loss - Income

Compute the unrealized gains or losses. Unrealized 2$ Prepare the adjusting entry for Larkspur on December 31, 2021. (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, Fair Value Adjustment 2021 Unrealized Holding Gain or Loss - Income

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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Novak Corp. has the following securities (all purchased in 2023) in its investment portfolio on December 31, 2023: 3,170 Anderson Corp. common shares, which cost $48,501; 9,500 Munter Ltd. common shares, which cost $579,800; and 6,400 King Corp. preferred shares, which cost $254,900. Their fair values at the end of 2023 were as follows: Anderson $50,080; Munter $569,300; and King $255,000. In 2024, Novak completed the following transactions: On January 15, sold 3,170 Anderson common shares at $20 per share less fees of $1,990. 2. On April 17, purchased 1,230 Castle Ltd. common shares at $34.80 per share plus fees of $1,940. 1. The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2024, the fair values per share of the securities were as follows: Munter $71; King $32; and Castle $13. Novak's accounting supervisor tells you that all these securities have fair values that can be readily…
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 970 shares @ $14 each $13,580 Rogers Company 910 shares @ $18 each 16,380 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 34,460 Fair value adjustment (7,840 ) Equity investments @ fair value $26,620 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share. 3. On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share. 6. On March 1, Rogers Company paid a $2 per share dividend.…
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2…