Ivanhoe, Inc. had the following equity investment portfolio at January 1, 2020.Evers Company 960 shares @ $14 each $13,440 Rogers Company 880 shares @ $20 each 17,600 Chance Company 520 shares @ $10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment (7,300)Equity investments @ fair value $28,940 During 2020, the following transactions took place.1. On March 1, Rogers Company paid a $2 per share dividend.2. On April 30, Ivanhoe, Inc. sold 320 shares of Chance Company for $11 per share.3. On May 15, Ivanhoe, Inc. purchased 100 more shares of Evers Company stock at $17 per share.4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $9.During 2021, the following transactions took place.5. On February 1, Ivanhoe, Inc. sold the remaining Chance shares for $9 per share.6. On March 1, Rogers Company paid a $2 per share dividend.7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.8. At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $21. Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021. The correct number for Fair Value is 4080 (1)Cash1760Dividend Revenue1760(2)Cash3520Gain on Sale of Investments320Equity Investments3200(3)Equity Investments1700Cash1700(4)Fair Value Adjustment10160Unrealized Holding Gain or Loss - Income10160(5)Cash1800Loss on Sale of Investments200Equity Investments2000(6)Cash1760Dividend Revenue1760(7)Dividend Receivable3180Dividend Revenue3180(8)Fair Value Adjustment4200Unrealized Holding Gain or Loss - Income4200

Ivanhoe, Inc. Partial Balance Sheet Particulars Dec 31, 2020 Dec 31, 2021 Current Asset…

Answered: Prepare a partial balance sheet showing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ivanhoe, Inc. had the following equity investment portfolio at January 1, 2020.

Evers Company	960 shares @ $14 each	$13,440
Rogers Company	880 shares @ $20 each	17,600
Chance Company	520 shares @ $10 each	5,200
Equity investments @ cost		36,240
Fair value adjustment		(7,300	)
Equity investments @ fair value		$28,940

During 2020, the following transactions took place.

1.		On March 1, Rogers Company paid a $2 per share dividend.
2.		On April 30, Ivanhoe, Inc. sold 320 shares of Chance Company for $11 per share.
3.		On May 15, Ivanhoe, Inc. purchased 100 more shares of Evers Company stock at $17 per share.
4.		At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $9.

During 2021, the following transactions took place.

5.		On February 1, Ivanhoe, Inc. sold the remaining Chance shares for $9 per share.
6.		On March 1, Rogers Company paid a $2 per share dividend.
7.		On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.
8.		At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $21.

Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021.

The correct number for Fair Value is 4080

(1)
Cash
1760
Dividend Revenue
1760
(2)
Cash
3520
Gain on Sale of Investments
320
Equity Investments
3200
(3)
Equity Investments
1700
Cash
1700
(4)
Fair Value Adjustment
10160
Unrealized Holding Gain or Loss - Income
10160
(5)
Cash
1800
Loss on Sale of Investments
200
Equity Investments
2000
(6)
Cash
1760
Dividend Revenue
1760
(7)
Dividend Receivable
3180
Dividend Revenue
3180
(8)
Fair Value Adjustment
4200
Unrealized Holding Gain or Loss - Income
4200

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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