Question

Zeus Investments Inc. is a regional investment company that began operations on January 1, 2016. The following transactions securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: relate to trading 2016 Feb. 14. Purchased 4,800 shares of Apollo Inc. as a trading security at Apr. 1. Purchased 2,300 shares of Ares Inc. as a trading security at $19 per share plus a brokerage commission of $92. June 1. Sold 600 shares of Apollo Inc. for $32 per share less a $100 brokerage commission. June 27. Received an annual dividend of $0.20 per share on Apollo Inc. stock. $26 per share plus a brokerage commission of s192. The portfolio of trading securities was adjusted to fair values of $33 and $18.50 per share for Apollo Inc. and Ares Dec. 31. Inc, respectively. 2017 Mar. 14. Purchased 1,200 shares of Athena Inc. as a trading security at s65 per share plus a $120 brokerage commission. Dune 26. Received an annual dividend of so.21 per share on Apollo Inc. stock. July 30. Sold 480 shares of Athena Inc. for s60 per share less a s50 brokerage commission. The portfolio of trading securities had a cost of $200,032 and a fair value of $188,000, requiring a credit balance in Valuation Allowance for Trading Investments of $12,032 ($200,032- $188,000). Thus, the debit balance from December 31, 2016, is to be adjusted to the new balance. Dec. 31. Required: 1. Journalize the entries enter "o". In your computations, round per share amounts to two decimal places. to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank or

Answer 1

22 Date 23 24 14-Feb Investments-Apollo Inc. (4800 26+192) 25 26 27 1-Apr Investments-Ares Inc. (2300*19)+92 28 29 30 1-Jun Cash (600*32-100) 31 32 Account Title & Explanation Debit Credit 2016 124992 Cash 124992 43792 Cash 43792 19100 Gain on Sale of Investments 3476 Investments-Apollo Inc. (12499214800 600) 15624 34 27-Jun Cash 35 36 37 31-Dec Valuation Allowance for Trading Investments 38 39 40 41 14-Mar Investments-Athena Inc. (1200*65+120 42 43 44 26-Jun Cash 45 46 Dividend Revenue (4200.20 27990 Unrealized gain on Trading Investments 27990 2017 78120 Cash 78120 882 Dividend Revenue (4200.21 882

30-Jul Cash (480 *60-50) 47 48 49 28750 2498 Loss on Sale of Investments Investments-Athena Inc. (78120/1200*480) 31248 51 31-Dec Unrealized Loss on Trading Investments 40022 Valuation Allowance for Trading Investments (27990+12032) 53 54