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ACC - Poppler Corporation Problem

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Question;During the course of your examination of the financial statements of Poppler Corporation for the year ended December 31, 2015, you found a new account, "Investments." Your examination revealed that during 2015, Poppler began a program of investments, and all investment-related transactions were entered in this account. Your analysis of this account for 2015 follows;Poppler CorporationAnalysis of InvestmentsFor the Year Ended December 31, 2015Date?2015 Debit Credit;(a) Harmon Company Common StockFeb. 14 Purchased 4,000 shares @ $55 per share. $220,000July 26 Received 400 shares of Harmon Company common stockas a stock dividend. (Memorandum entry in general ledger.)Sept. 28 Sold the 400 shares of Harmon Company common stockreceived July 26 @ $60 per share. $24,000(b) Debit CreditTaber Inc., Common StockApr. 30 Purchased 20,000 shares @ $40 per share. $800,000Oct. 28 Received dividend of $1 per share. $20,000Additional information:1. The fair value for each security as of the 2015 date of each transaction follow:Security Feb. 14 Apr. 30 July 26 Sept. 28 Dec. 31Harmon Company $55 $62 $60 $64Taber Inc. $40 33Doppler Corp. 25 28 30 33 352. All of the investments of Poppler are nominal in respect to percentage of ownership (5% or less).3. Each investment is considered by Poppler?s management to be available-for-sale.Instructions(1) Prepare any necessary correcting journal entries related to investments (a) and (b).(2) Prepare the entry, if necessary, to record the proper valuation of the available-for-sale equity security portfolio as of December 31, 2015.

 

Paper#44185 | Written in 18-Jul-2015

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