1) Journal Entries | ||||
Date | Account titles | Debit | Credit | |
2017 | ||||
Jan.20 | Long-Term Investments—AFS (J&J) (1300 x $20.80) + 270 | $27,310 | ||
Cash | $27,310 | |||
Purchased Johnson & Johnson shares | ||||
Feb.9 | Long-Term Investments—AFS (Sony).(1500 x $46.50) +255 | $70,005 | ||
Cash | $70,005 | |||
Purchased Sony shares | ||||
June.12 | Long-Term Investments—AFS (Mattel) (1800 x $27.30) + $225 | $49,365 | ||
Cash | $49,365 | |||
Purchased Mattel shares | ||||
Dec.31 | Unrealized Loss - Equity | $4,730 | ||
Market Adjustment—AFS (LT) | $4,730 | |||
Annual adjustment to market values | ||||
Cost | Fair Value | Difference | ||
j &j = 1300 x 21.80 | $27,310 | $28,340 | $1,030 | |
Sony = 1500 x 38.30 | $70,005 | $57,450 | -$12,555 | |
Mattel = 1800 x 31.20 | $49,365 | $56,160 | $6,795 | |
Total | $146,680 | $141,950 | -$4,730 | |
2018 | ||||
Apr.15 | Cash | $30,385 | ||
Gain on Sale of Investments | $3,075 | |||
Long-Term Investments—AFS (J&J) | $27,310 | |||
Sold Johnson & Johnson shares [(1,300 x $23.80) - $555] | ||||
Jul.5 | Cash | $43,295 | ||
Loss on Sale of Investments | $6,070 | |||
Long-Term Investments—AFS (Mattel) | $49,365 | |||
Sold Mattel shares [(1,800 x $24.20) - $265] | ||||
Jul.22 | Long-Term Investments—AFS (Sara Lee) (900 x $22.80 + 510 | $21,030 | ||
Cash | $21,030 | |||
Purchased Sara Lee shares | ||||
Aug.19 | Long-Term Investments—AFS (Eastman Kodak | $20,988 | ||
Cash | $20,988 | |||
Purchased Eastman Kodak shares [(1200 x $17.30 + $228) | ||||
Dec. 31 | Unrealized Loss - Equity | $12,613 | ||
Market Adjustment—AFS (LT) | $12,613 | |||
Annual adjustment to market values | ||||
Cost | Fair value | Profit/loss | ||
Kodak | $20,988 | $23,460 | $2,472 | |
Sara lee | $21,030 | $18,270 | -$2,760 | |
Sony | $70,005 | $52,950 | -$17,055 | |
-$17,343 | ||||
Fair Value Adjustment account: | ||||
Required balance | $17,343 | cr. | ||
Unadjusted balance | $4,730 | cr. | ||
Required change | $12,613 | cr. | ||
2019 | ||||
Feb.27 | Long-Term Investments—AFS (Microsoft) | $182,265 | ||
Cash | $182,265 | |||
Purchased Microsoft shares [(2700 x $67.30) + $555] | ||||
June. 21 | Cash | $71,540 | ||
Gain on Sale of Investments | $1,535 | |||
Long-Term Investments—AFS (Sony) | $70,005 | |||
Sold Sony shares [(1,500 x $48.30) - $910]. | ||||
jun. 30 | Long-Term Investments—AFS (Black & Decker) | $62,175 | ||
Cash | $62,175 | |||
Purchased Black & Decker shares [(1,700 x $36.30) + $465] | ||||
Aug.3 | Cash | $14,430 | ||
Loss on Sale of Investments | $6,600 | |||
Long-Term Investments—AFS (Sara Lee) | $21,030 | |||
Sold Sara Lee shares [(900 x $16.55) - $465] | ||||
Nov.1 | Cash | $27,005 | ||
Gain on Sale of Investments | $6,017 | |||
Long-Term Investments—AFS (E. Kodak) | $20,988 | |||
Sold Eastman Kodak shares [(1200 x $23.05) - $655] | ||||
Dec.31 | Market Adjustment—AFS (LT) | $26,823 | ||
Unrealized Loss—Equity | $17,343 | |||
Unrealized Gain—Equity | $9,480 | |||
Annual adjustment to market values | ||||
Cost | Fair market | difference | ||
Black & Decker | $62,175 | $66,810 | 4635 | |
Microsoft | $182,265 | $187,110 | $4,845 | |
Total | $9,480 | |||
Fair Value Adjustment account: | ||||
Required balance . | $9,480 | dr | ||
Unadjusted balance | $17,343 | cr. | ||
Required change | $26,823 | dr. |
Help Save & Exit Sub Problem 15-3A Recording, adjusting, and reporting long-term available-for-sale securities LO (The...
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...
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...
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. 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...
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 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 $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...
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...
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...