On December 31, 2012, Ogallala Associates owned the following - 10389

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AP16-3A On December 31, 2012, Ogallala 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 Carlene Co. 1,920 $61,440 Riverdale Co. 5,120 40,960 Raczynski Co. 1,600 32,000 On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the following transactions occurred. July 1 Received $1 per share semiannual cash dividend on Riverdale Co. common stock. Aug. 1 Received $0.6 per share cash dividend on Carlene Co. common stock. Sept. 1 Sold 1,540 shares of Riverdale Co. common stock for cash at $7 per share, less brokerage fees of $280. Oct. 1 Sold 768 shares of Carlene Co. common stock for cash at $34 per share, less brokerage fees of $480. Nov. 1 Received $1 per share cash dividend on Raczynski Co. common stock. Dec. 15 Received $0.6 per share cash dividend on Carlene Co. common stock. Dec. 31 Received $1 per share semiannual cash dividend on Riverdale Co. common stock. At December 31, the fair values per share of the common stocks were: Carlene Co. $35, Riverdale Co. $7, and Raczynski Co. $18. Your answer is correct. Journalize the 2013 transactions and post to the account Stock Investments. (Use the T-account form.) (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.) Prepare the adjusting entry at December 31, 2013, to show the securities at fair value. The stock should be classified as available-for-sale securities. Show the balance sheet presentation of the investments at December 31, 2013. At this date, Ogallala Associates has common stock $1,481,100 and retained earnings $1,152,600. (If amount is a decrease, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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