Stock Investment Transactions, Equity Method and
Available-for-Sale Securities Roman Products, Inc., is a wholesaler
of men’s hair products. The company began operations on January 1,
2016. The following transactions relate to securities acquired by
Roman Products, Inc., which has a fiscal year ending on December
31: 2016 Jan. 3 Purchased 5,200 shares of Whalen Inc. as an
available-for-sale security at $54 per share, including the
brokerage commission. July 8 Received a cash dividend of $0.4 per
share on the Whalen stock. Oct. 19 Sold 2,300 shares of Whalen Inc.
stock at $58 per share, less a brokerage commission of $35. Dec. 12
A cash dividend of $0.4 per share was received on the Whalen stock.
Dec. 31 Whalen Inc. is classified as an available-for-sale
investment and is adjusted to a fair value of $52 per share. Use
the valuation allowance for available-for-sale investments account
in making the adjustment. 2017 Jan. 5 Purchased an influential
interest in Tasmania Inc. for $720,000 by purchasing 52,500 shares
directly from the estate of the founder of Tasmania Inc. There are
150,000 shares of Tasmania Inc. stock outstanding. July 9 Received
a cash dividend of $0.5 per share on Whalen Inc. stock. Dec. 8
Received a cash dividend of $0.5 per share plus an extra dividend
of $0.1 per share on Whalen Inc. stock. Dec. 31 Received $22,000 of
cash dividends on Tasmania Inc. stock. Tasmania Inc. reported net
income of $90,000 in 2017. Roman Products uses the equity method of
accounting for its investment in Tasmania Inc. Dec. 31 Whalen Inc.
is classified as an available-for-sale investment and is adjusted
to a fair value of $57 per share. Use the valuation allowance for
available-for-sale investments account in making the adjustment for
the change in fair value from $52 to $57 per share. Required: 1.
Journalize the entries to record the preceding transactions. For a
compound transaction, if an amount box does not require an entry,
leave it blank. In your computations, round per share amounts to
two decimal places.