P13-3B On December 31, 2008, Hastco Associates owned the following securities, held as

Price: $2.50


On December 31, 2008, Hastco Associates owned the following securities, held as
long-term investments.

Common stock		Shares	Cost
Agee Co.		3,000	60,000
Burns Co.		6,000	36,000
Corea Co.		1,200	24,000

On this date, the total fair value of the securities was equal to its cost.The securities are not held
for influence or control over the investees. In 2009, the following transactions occurred.

July 1 Received $1 per share semiannual cash dividend on Burns Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on Agee Co. common stock.
Sept. 1 Sold 2,000 shares of Burns Co. common stock for cash at $8 per share, less brokerage
fees of $300.
Oct. 1 Sold 600 shares of Agee Co. common stock for cash at $28 per share, less brokerage
fees of $600.
Nov. 1 Received $1 per share cash dividend on Corea Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on Agee Co. common stock.
31 Received $1 per share semiannual cash dividend on Burns Co. common stock.
At December 31, the fair values per share of the common stocks were: Agee Co. $18, Burns Co.
$6, and Corea Co. $19.

Instructions
(a) Journalize the 2009 transactions and post to the account Stock Investments. (Use the T-account
form.)
(b) Prepare the adjusting entry at December 31, 2009, to show the securities at fair value. The
stock should be classified as available-for-sale securities.
(c) Show the balance sheet presentation of the investments at December 31, 2009. At this date,
Hastco Associates has common stock $2,000,000 and retained earnings $1,200,000.