Castleman Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2010.
- 1,000 shares of Evers Company at $21.00 per share $21,000
- 900 shares of Rogers Company at $24.00 per share $21,600
- 500 shares of Chance Company at $7.00 per share $3,500
- Available-for-sale securities at cost: $46,100
- Securities fair value adjustment-Available-for-sale - Credit balance ($7,500)
- Available-for-sale securities at fair value: $38,600
During 2010, the following transactions took place:
1. On March 1, Rogers Company paid a $2.50 per share dividend.
2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for $10.00 per share
3. On May 15, Castleman Holding, Inc. purchased 100 more shares of Evers Co. stock at $12.00 per share
4. At December 31, 2010, the stocks had the following price per share values:
- Evers Company $23.00
- Rogers Company $22.50
- Chance Company $9.00
During 2011, the following transactions took place:
5. On February 1, Castleman Holding, Inc. sold the remaining Chance shares for $8.50 per share.
6. On March 1, Rogers Company paid a $3.00 per share dividend.
7. On December 21, Evers Company declared a cash dividend of $2.00 per share to be paid in the next month.
8. At December 31, 2011, the stocks had the following price per share values:
- Evers Company $24.00
- Rogers Company $23.00
(a) Prepare journal entries for each of the above transactions.
(b) Prepare a partial balance sheet showing the Investments account at December 31, 2010 and 2011.