ACT 3392 Troy University Companies Investment Portfolio Worksheet
I’m studying for my Accounting class and need an explanation.
Charlie has the following investment portfolio. Charlie bought the stocks during 2018. Charlie’s investment in each of the companies accounts for less than 1% of each company’s outstanding common shares.
Original FairValue
Cost 12-31-18 12-31-19 12-31-20
Jungle Company stock $50,000 $51,000 $22,000 $41,000
Evan Company stock $40,000 $35,000 $37,000 $48,000
Leia Company stock $60,000 $77,000 $95,000
On 02-14-20, Charlie sold all of the Leia stock for $124,000.
On 11-15-20, Charlie received a $1,000 dividend on its investment in Evan Company. This was the first dividend Charlie received on its equity investments.
Assume Charlie only prepares AJEs every December 31. Prepare the entries Charlie should make on:
12-31-18.
12-31-19.
02-14-20.
11-15-20.
12-31-20.