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Question: instructions forte inc produces and sells theater set designs and...

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Instructions Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31 Record these transactions on page 10: ear Jan. 22 Purchased 25,400 shares of Sankal Inc. as an available-for-sale security at $17 per share, including the 8 Received a cash dividend of $0.22 per share on Sankal Inc. stock. Mar Sep Oct. Dec. 8 A cash dividend of S0.24 per share was received on the Sankal stock. 17 Sold 4,900 shares of Sankal Inc. stock at $15 per share less a brokerage commission of $85 Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $28 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. 31 Record these transactions on page 11 Year 2 Jan. Purchased an influential interest in Imboden Inc. for $480,000 by purchasing 60,000 shares directly from the estate of the founder of Imboden Inc. There are 200,000 shares of Imboden Inc. stock outstanding Received a cash dividend of $0.28 per share on Sankal Inc. stock. 10 Mar 10 Sep 12 Received a cash dividend of $0.25 per share plus an extra dividend of $0.07 per share on Sankal Inc. stock. Received $55,100 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of S474,100 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. Dec.31 Dec 31 Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $23 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $28 to $23 per share Required Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. 1. 2. Prepare the investment-related asset and stockholders equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming the Retained Earnings balance on December 31, Year 2, is $440,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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