Solution: Journal Entries | |||
Date (2015) | Account Title & Explanation | Debit ($) | Credit ($) |
Jan-20 | Short term investments-Trading (Ford Motor Co) | 20,925 | |
Cash [(800 × $26.00) + $125] | 20,925 | ||
Feb-09 | Short term investments—Trading (Lucent) | 97,928 | |
Cash [(2,200 × $44.25) + $578] | 97,928 | ||
Oct-12 | Short term investments—Trading (Z-Seven) | 5,825 | |
Cash [(750 × $7.50) + $200] | 5,825 | ||
Dec-31 | Fair value adjustment—Trading | 5,322 | |
Unrealised gain (Income) - $130,000 - $124,678 | 5,322 | ||
Date (2016) | Account Title & Explanation | Debit ($) | Credit ($) |
Apr-15 | Cash [(800 × $29.00) − $285] | 22,915 | |
Gain on sale of short term investments | 1,990 | ||
Short term investments—Trading (Ford Motor Co) | 20,925 | ||
Jul-05 | Cash [(750 × $10.25) − $102.50] | 7,585 | |
Gain on sale of short term investments | 1,760 | ||
Short term investments—Trading (Zseven) | 5,825 | ||
Jul-22 | Short term investments—Trading (Hunt Corp.) | 48,444 | |
Cash [(1,600 × $30.00) + $444] | 48,444 | ||
Aug-19 | Short term investments—Trading (Donna Karan) | 33,140 | |
Cash [(1,800 × $18.25) + $290] | 33,140 | ||
Dec-31 | Unrealisedd loss (Income) {[$160,000 - $179,512] + $5322} | 24,834 | |
Fair value adjustment—Trading | 24,834 | ||
Date (2017) | Account Title & Explanation | Debit ($) | Credit ($) |
Feb-27 | Shortterm investments—Trading (HCA) | 116,020 | |
Cash [(3,400 × $34.00) + $420] | 116,020 | ||
Mar-03 | Cash [(1,600 × $25.00) − $250] | 39,750 | |
Loss on sale of short term investments | 8,694 | ||
Short term investments—Trading (Hunt) | 48,444 | ||
Jun-21 | Cash [(2,200 × $42.00) − $420] | 91,980 | |
Loss on sale of short term investments | 5,948 | ||
Short term investments—Trading (Lucent) | 97,928 | ||
Jun-30 | Short term investments—Trading (Black & Decker) | 57,595 | |
Cash [(1,200 × $47.50) + $595] | 57,595 | ||
Nov-01 | Cash [(1,800 × $18.25) − $309] | 32,541 | |
Loss on sale of short term investments | 599 | ||
Short term investments—Trading (Dnna Karan) | 33,140 | ||
Dec-31 | Fair value adjustment—Trading | 25,897 | |
Unrealised Gain (Income) {[$180,000-$173,615]+19512 | 25,897 |
Carlsville Company, which began operations in 2015. Invests its idle cash in trading securities. The following...
Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities. 2017 Jan. 20 Purchased 1,000 shares of Ford Motor Co. at $28 per share plus a $120 commission. Feb. 9 Purchased 2,300 shares of Lucent at $31 per share plus a $200 commission. Oct. 12 Purchased 800 shares of Z-Seven at $7.60 per share plus a $100 commission. Dec. 31 Fair value of the short-term...
Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities 2017 Jan. 20 Purchased 900 shares of Ford Motor Co. at $27 per share plus a $130 commission Feb. 9 Purchased 2,400 shares of Lucent at $40 per share plus a $20e commission. Oct. 12 Purchased 700 shares of Z-Seven at $7.10 per share plus a $95 commission. Dec. 31 Fair value of the short-term...
Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities 2017 Jan. 20 Purchased 900 shares of Ford Motor Co. at $27 per share plus a $130 commission. Feb. 9 Purchased 2,400 shares of Lucent at $40 per share plus a $200 comission. Oct. 12 Purchased 700 shares of Z-Seven at $7.10 per share plus a $95 comission. Dec. 31 Fair value of the short-term...
2017 Jan. 20 Purchased 1,000 shares of Ford Motor Co. at $27 per share plus a $130 с㎝ussion. Feb. 9 Purchased 2,900 shares of Lucent at $31 per share plus a $195 commission 0ct. 12 Purchased 740 shares of Z-Seven at $7.60 per share plus a 100 commission. Dec. 31 Fair value of the short-term investnents in trading securities is $126, 300. 2018 Apr. 15 Sold 1, 000 shares of Ford Motor Co. at $31 per share less a $290...
Stock Investment Transactions, Trading Securities Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,200 shares of Apollo Inc. as a trading security at $36 per share plus a brokerage commission of $640. Apr. 1. Purchased 1,500 shares of Ares Inc. as a trading security at $14...
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,200 shares of Hunt Corp. at $20 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,600 shares of Hunt Corp. at $30 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,300 shares of Hunt Corp. at $22 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,700 shares of Hunt Corp. at $25 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...
Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity. 2017 Jan. 20 Purchased 1,000 shares of Johnson & Johnson at $20.50 per share plus a $240 commission. d 1, 200 shares of Sony at $46.20 per share plus a $225 commission. June 12 Purchased 1,500 shares of Mattel at $27.00 per share plus a $195 commission. Dec. 31 Per share fair values for stocks...