Problem 12-3A (Part Level Submission) On December 31, 2015, Turnball Associates
ID: 2599631 • Letter: P
Question
Problem 12-3A (Part Level Submission) On December 31, 2015, Turnball Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee Shares Cost Common Stock Gehring Co Wooderson Co Kitselton Co 2,190 4,990 1,660 $67,890 39,920 34,860 On December 31, 2015, the total fair value of the securities was equal to its cost. In 2016, the following transactions occurred July Received $1 per share semiannual cash dividend on Wooderson Co. common stock. Aug. 1 Received $0.50 per share cash dividend on Gehring Co. common stock. Sept. Sold 1,497 shares of Wooderson Co. common stock for cash at $7 per share Oct. Sold 876 shares of Gehring Co. common stock for cash at $34 per share Nov. 1 Received $1 per share cash dividend on Kitselton Co. common stock. Dec. 15 Received $0.50 per share cash dividend on Gehring Co. common stock. Dec. 31 Received $1 per share semiannual cash dividend on Wooderson Co. common stock. At December 31, the fair values per share of the common stocks were: Gehring Co. 33, Wooderson Co. $7, and Kitselton Co. $19Explanation / Answer
Dividend Revenue
($1 per share semi-annual cash dividend received
on 4990 shares of Wooderson Co)
Dividend Revenue
($0.50 per share cash dividend received
on 2190 shares of Gehring Co)
Loss on sale of available-for-sale
Securities
(1497 shares of Wooderson co. sold at a loss of
$1 per share recognized in revenue)
Gain on sale of available-for-sale
securities
(876 shares of Gehring co. sold at a gain of
$3 per share recognized in revenue)
($1 per share cash dividend received
on 1660 shares of Kitselton Co)
($0.50 per share cash dividend received
on 1314 shares of Gehring Co)
($1 per share semi-annual cash dividend received
on 3493 shares of Wooderson Co)
Date Account Titles & Explanation Debit Credit July 1 Cash 4990Dividend Revenue
4990($1 per share semi-annual cash dividend received
on 4990 shares of Wooderson Co)
Aug 1 Cash 1095Dividend Revenue
1095($0.50 per share cash dividend received
on 2190 shares of Gehring Co)
Sept 1 Cash 10479Loss on sale of available-for-sale
Securities
1497 Stock Investments 11976(1497 shares of Wooderson co. sold at a loss of
$1 per share recognized in revenue)
Oct 1 Cash 29784Gain on sale of available-for-sale
securities
2628 Stock Investments 27156(876 shares of Gehring co. sold at a gain of
$3 per share recognized in revenue)
Nov 1 Cash 1660 Dividend Revenue 1660($1 per share cash dividend received
on 1660 shares of Kitselton Co)
Dec 15 Cash 657 Dividend Revenue 657($0.50 per share cash dividend received
on 1314 shares of Gehring Co)
Dec31 Cash 3493 Dividend Revenue 3493($1 per share semi-annual cash dividend received
on 3493 shares of Wooderson Co)