Reference no: EM132221400
Question - On December 31, 2017, Gulbis, Inc. owned the following securities, held as a short-term investment (available-for-sale securities). The securities are not held for influence or control of the investee.
|
Stock
|
# of Shares
|
Cost
|
|
Stephens common stock
|
5,000
|
90,000
|
|
Robson common stock
|
5,500
|
41,525
|
|
Keys common stock
|
3,200
|
34,400
|
|
|
|
165,925
|
On December 31, 2017, the total fair value of the securities was equal to its cost. In 2018, the following transactions occurred:
July 1 Received $1.25 per share cash dividend on robsonco. Common stock.
Aug 1 Received $0.87 per share cash dividend on stephens Co. common stock.
Sept 1 Sold 1,300 shares of robsonco common stock for cash at$8.35 per share, less brokerage fees of $500.
Oct 1 Sold 1,850 shares of stephens Co. common stock for cash at $20 per share, less brokerage fees of $600.
At year end on December 31, 2018, the market values per share were:
Stephens common stock - $17.50
Robson common stock - $8.55
Keys common stock - $11.75
Instructions - Prepare the journal entries to record the 2018 stock transactions.