1) Journal Entries | ||||
Date | Account titles | Debit | Credit | |
2017 | ||||
Jan.20 | Long-Term Investments—AFS (J&J) (1000 x $20.50) + 240 | 20740 | ||
Cash | 20740 | |||
Purchased Johnson & Johnson shares | ||||
Feb.9 | Long-Term Investments—AFS (Sony).(1200 x $46.20) +225 | 55665 | ||
Cash | 55665 | |||
Purchased Sony shares | ||||
June.12 | Long-Term Investments—AFS (Mattel) (1500 x $27) + $195 | 40695 | ||
Cash | 40695 | |||
Purchased Mattel shares | ||||
Dec.31 | Unrealized Loss - Equity | 3650 | ||
Market Adjustment—AFS (LT) | 3650 | |||
Annual adjustment to market values | ||||
Cost | Fair Value | Difference | ||
j &j = 1000 x 21.50 | 20740 | 21500 | 760 | |
Sony = 1200 x 38 | 55665 | 45600 | -10065 | |
Mattel = 1500 x 30.90 | 40695 | 46350 | 5655 | |
Total | 117100 | 113450 | -3650 | |
2018 | ||||
Apr.15 | Cash | 22975 | ||
Gain on Sale of Investments | 2235 | |||
Long-Term Investments—AFS (J&J) | 20740 | |||
Sold Johnson & Johnson shares [(1,000 x $23.50) - $525] | ||||
Jul.5 | Cash | 35615 | ||
Loss on Sale of Investments | 5080 | |||
Long-Term Investments—AFS (Mattel) | 40695 | |||
Sold Mattel shares [(1,500 x $23.90) - $235] | ||||
Jul.22 | Long-Term Investments—AFS (Sara Lee) (600 x $22.50 + 480 | 13980 | ||
Cash | 13980 | |||
Purchased Sara Lee shares | ||||
Aug.19 | Long-Term Investments—AFS (Eastman Kodak | 15498 | ||
Cash | 15498 | |||
Purchased Eastman Kodak shares [(900 x $17 + $198) | ||||
Dec. 31 | Unrealized Loss - Equity | 10168 | ||
Market Adjustment—AFS (LT) | 10168 | |||
Annual adjustment to market values | ||||
Cost | Fair value | Profit/loss | ||
Kodak | 15498 | 17325 | 1827 | |
Sara lee | 13980 | 12000 | -1980 | |
Sony | 55665 | 42000 | -13665 | |
-13818 | ||||
Fair Value Adjustment account: | ||||
Required balance | 13818 | cr. | ||
Unadjusted balance | 3650 | cr. | ||
Required change | 10168 | cr. | ||
2019 | ||||
Feb.27 | Long-Term Investments—AFS (Microsoft) | 161325 | ||
Cash | 161325 | |||
Purchased Microsoft shares [(2400 x $67.00) + $525] | ||||
June. 21 | Cash | 56720 | ||
Gain on Sale of Investments | 1055 | |||
Long-Term Investments—AFS (Sony) | 55665 | |||
Sold Sony shares [(1,200 x $48.00) - $880]. | ||||
jun. 30 | Long-Term Investments—AFS (Black & Decker) | 50835 | ||
Cash | 50835 | |||
Purchased Black & Decker shares [(1,400 x $36.00) + $435] | ||||
Aug.3 | Cash | 9315 | ||
Loss on Sale of Investments | 4665 | |||
Long-Term Investments—AFS (Sara Lee) | 13980 | |||
Sold Sara Lee shares [(600 x $16.25) - $435] | ||||
Nov.1 | Cash | 19850 | ||
Gain on Sale of Investments | 4352 | |||
Long-Term Investments—AFS (E. Kodak) | 15498 | |||
Sold Eastman Kodak shares [(900 x $22.75) - $625] | ||||
Dec.31 | Market Adjustment—AFS (LT) | 21858 | ||
Unrealized Loss—Equity | 13818 | |||
Unrealized Gain—Equity | 8040 | |||
Annual adjustment to market values | ||||
Cost | Fair market | difference | ||
Black & Decker | 50835 | 54600 | 3765 | |
Microsoft | 161325 | 165600 | 4275 | |
Total | 8040 | |||
Fair Value Adjustment account: | ||||
Required balance . | 8040 | dr | ||
Unadjusted balance | 13818 | cr. | ||
Required change | 21858 | dr. | ||
Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series...
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. Feb. 9 Purchased 1,200 shares of Sony at $46.20 per share plus a $225 commission. June 12 Purchased 1,5e0 shares of Mattel at $27.00 per share plus a $195 commission. Dec. 31 Per share fair values for...
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. Feb. 9 Purchased 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...
Required information [The following information applies to the questions displayed below.] 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 2,900 shares of Johnson & Johnson at $22.40 per share plus a $430 commission. Feb. 9 Purchased 3,100 shares of Sony at $48.10 per share plus a $415 commission. June 12 Purchased 3,400 shares of Mattel at $28.90 per share...
Required information [The following information applies to the questions displayed below.] 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 2,900 shares of Johnson & Johnson at $22.40 per share plus a $430 commission. Feb. 9 Purchased 3,100 shares of Sony at $48.10 per share plus a $415 commission. June 12 Purchased 3,400 shares of Mattel at $28.90 per share...
Chec Problem 15-3A Recording, adjusting, and reporting long-term available-for-sale securities LO P3 [The following information applies to the questions displayed below) 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 1,300 shares of Johnson & Johnson at $20.80 per share plus a $278 commission. Feb. 9 Purchased 1,580 shares of Sony at $46.5e per share plus a $255 commission. une...
Help Save & Exit Sub Problem 15-3A Recording, adjusting, and reporting long-term available-for-sale securities LO (The following information applies to the questions displayed below P3 Grass Security, which began operations in 2017, invests in long-term available-for-sale securties. Following is a series of transactions and events determining its long-term investment activity 2017 Jan. 20 Purchased 1, 300 shares of 3ohnson & 3ohnson at $20.se per share plus a $270 commission. Feb. 9 Purchased 1,500 shares of Sony at $46.58 per share...
[The following information applies to the questions displayed below.] Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $20,500. Feb. 9 Purchased notes of Sony for $55,440. June 12 Purchased bonds of Mattel for $40,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2...
Required information Problem 15-2A Recording, adjusting, and reporting available-for-sale debt securities LO P3 (The following information applies to the questions displayed below.) Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $20,500. Feb. 9 Purchased notes of Sony for $55, 440. June 12 Purchased bonds of Mattel for $40, 500. Dec. 31 Fair values for debt...
Required information Problem 15-2A Recording, adjusting, and reporting available-for-sale debt securities LO P3 [The following information applies to the questions displayed below.] Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $28,500. Feb. 9 Purchased notes of Sony for $62,640. June 12 Purchased bonds of Mattel for $48,500. Dec. 31 Fair values for debt in the...
Required information Problem 15-2A Recording, adjusting, and reporting available-for-sale debt securities LO P3 (The following information applies to the questions displayed below.] Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $20, 500. Feb. 9 Purchased notes of Sony for $55, 440. June 12 Purchased bonds of Mattel for $40, 500. Dec. 31 Fair values for...