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P16.5 (LO 2, 3), AP: Here is Frederick Company's portfolio of long-term stock investments on December 31, 2021, the end of its first year of operations. Cost 1,000 shares of Willhite Corporation common stock: $52,000 1,400 shares of Hutcherson Corporation common stock: $84,000 1,200 shares of Downing Corporation preferred stock: $33,600 On December 31, the total cost of the portfolio equaled the total fair value. Frederick had the following transactions related to the securities during 2022. Jan. 20: Sold all 1,000 shares of Willhite Corporation common stock at $55 per share. Jan. 28: Purchased 400 shares of $10 par value common stock of Liggett Corporation at $78 per share. Jan. 30: Received a cash dividend of $1.15 per share on Hutcherson Corp. common stock. Feb. 8: Received cash dividends of $0.40 per share on Downing Corp. preferred stock. Feb. 18: Sold all 1,200 shares of Downing Corp. preferred stock at $27 per share. July 30: Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock. Sept. 6: Purchased an additional 900 shares of $10 par value common stock of Liggett Corporation at $82 per share. Dec. 1: Received a cash dividend of $1.50 per share on Liggett Corporation's common stock. On December 31, 2022, the fair values of the securities were: Hutcherson Corporation common stock: $64 per share Liggett Corporation common stock: $72 per share Instructions: 1. Prepare journal entries to record the transactions. 2. Post to the investment account. (Use a T-account.) 3. Prepare the adjusting entry on December 31, 2022, to report the portfolio at fair value. 4. Show the balance sheet presentation on December 31, 2022, for the investment-related accounts. 5. Prepare a balance sheet.
Akash M.
Early in the year, Debra Deal and several friends organized a corporation called Markup, Inc. The corporation was authorized to issue 100,000 shares of $100 par value, 5 percent cumulative preferred stock and 100,000 shares of $1 par value common stock. The following transactions (among others) occurred during the year: Jan. 7: Issued for cash 30,000 shares of common stock at $10 per share. The shares were issued to Deal and four other investors. Jan. 12: Issued an additional 1,000 shares of common stock to Deal in exchange for her services in organizing the corporation. The stockholders agreed that these services were worth $12,000. Jan. 18: Issued 4,000 shares of preferred stock for cash of $400,000. July 5: Acquired land as a building site in exchange for 10,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction at $12 per share. Nov. 25: The first annual dividend of $5 per share was declared on the preferred stock to be paid December 11. Dec. 11: Paid the cash dividend declared on November 25. Dec. 31: After the revenue and expenses were closed into the Income Summary account, that amount indicated a net income of $810,000.
Supreeta N.
26. Calculate the amount of External Equities as on 31st March, 2021 in the following: (i) On 31st March, 2021, total assets and capital were  15,00,000 and 10,50,000 respectively. (ii) On 1st April, 2020, Mukesh started business with a capital of  3,00,000 and a loan of  3,00,000 borrowed from a friend. During the year, he earned a profit of  1,50,000. On 31st March, 2021, the total assets were  15,00,000. (iii) On 1st April, 2020, Ramesh started business with a capital of  3,00,000 and a loan of  3,00,000 borrowed from a friend. During the year, he earned a profit of  1,50,000, introduced an additional capital of  1,80,000 and had withdrawn  90,000 for personal use. On 31st March, 2021 total assets were  15,00,000.
Madhur L.
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