Carlsville Company began operations in the current year and had no prior stock investments. The...
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Accounting
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments.
July 22
Purchased 1,300 shares of Hunt Corporation at $22 per share.
September 5
Received a $2 cash dividend for each share of Hunt Corporation.
September 27
Purchased 3,400 shares of HCA at $28 per share.
October 3
Sold 1,300 shares of Hunt at $17 per share.
October 30
Purchased 1,000 shares of Black & Decker at $53 per share.
December 17
Received a $3 cash dividend for each share of Black & Decker.
December 31
Fair value of the short-term stock investments is $153,000.=
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