Hurst Company Case Study

P 16-3A
On December 31, 2008, Ramey Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. Common Stock | Shares | Cost | Hurst Co. | 2000 | $60000 | Pine Co. | 5000 | $45000 | Scott Co. | 1500 | $30000 |
On December 31, 2008, the total fair value of the securities was equal to its cost. In 2009, the following transactions occurred.
July 1 Received $1 per share semiannual cash dividend on Pine Co. common stock.
Aug 1 Received $0.50 per share cash dividend on Hurst Co. common stock.
Sept 1 Sold 1,500 shares of Pine Co. common stock for cash at $8 per share, less brokerage fees of $300.
Oct 1 Sold 800 shares of Hurst Co. common stock for cash at
| $ 1,800 | | | | (1500/5000x$45000) | | $ 13,500 | October 1, 2009 | Cash | | $ 25,900 | | | | Gain on sale of stock investment | | $ 1,900 | | | Stock investment_Hurst Co. | | $ 24,000 | | | (800/2000x$60000) | | | November 1, 2009 | Cash | | $ 1,500 | | | | Dividend revenue(1500shx$1) | | $ 1,500 | December 15, 2009 | Cash | | $ 600 | | | | Dividend revenue(1200shx$0.5) | | $ 600 | December 31, 2009 | Cash | | $ 3,500 | | | | Dividend revenue(3500shx$1) | | $ 3,500 |

Stock investment_Hurst Co. | 31/12 $60000 | 1/12 $24000 | | | $36,000 | | Stock investment_Pine Co. | 31/12 $45000 | 1/9 $13500