On December 31, 2014, Turnball Associates owned the following securities, held as a long-term investment....
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Accounting
On December 31, 2014, Turnball Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.
Common Stock Shares Cost
Gehring Co. 1,830 $54,900
Wooderson Co. 4,810 48,100
Kitselton Co. 1,670 33,400
On December 31, 2014, the total fair value of the securities was equal to its cost. In 2015, the following transactions occurred.
July 1 Received $2 per share semiannual cash dividend on Wooderson Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on Gehring Co. common stock.
Sept. 1 Sold 1,443 shares of Wooderson Co. common stock for cash at $9 per share.
Oct. 1 Sold 732 shares of Gehring Co. common stock for cash at $33 per share.
Nov. 1 Received $2 per share cash dividend on Kitselton Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on Gehring Co. common stock.
Dec. 31 Received $2 per share semiannual cash dividend on Wooderson Co. common stock.
At December 31, the fair values per share of the common stocks were: Gehring Co. $32, Wooderson Co. $9, and Kitselton Co. $18.
Prepare the adjusting entry at December 31, 2015, to show the securities at fair value. The stock should be classified as available-for-sale securities.
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