Question

Please show all work and calculations
gstttities oh its September 30, 2018, balance sheet. in Eauity Securities Noonan Corporation prepares quarterly financial statements and invests its ble securities. At the end of 2018, Noonan's portfolio of trading investments consisted of LO 13.3 excess funds in marketa the following equity securities: Number of Shares Cost per Share Fair Value Security Keene Company Sachs Inc. Bacon Company 500 800 400 $60 43 70 per Share $60 72 During the first half of 2019, Noonan engaged in the following investment transactions Jan. 6 Sold one-half of the Sachs shares for $45 per share. Feb. 3 Purchased 700 shares of Jackson Corporation common stock for $45 per share. Mar. 31 Dividends of $2,500 were received on the investments, and the following information is available on market prices: Problems Fair Value per Share $59 45 70 43 Security Keene Company Sachs Inc. Bacon Company Jackson Corporation Purchased 300 shares of Quinn Company preferred stock for $52 per share Sold the remainder of the Sachs shares for $42 per share. Apr. 14 May 11 June 30 Dividends of $2,800 were received on investments, and the following information is available Keene Company Bacon Company Jackson Corporation Quinn Company Fair Value per Share $62 69 46 50 Requ 2. 3. 1. Record Noonan's investment transactions for January 6 through jane 30, 2019. Show the items of income or loss from investment transactions that Noonan reports for each of the first an second quarters of 2019. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assum ing that management expects to dispose of the Keene and Sachs securities within the next year.

Answer 1

Solution 1 Date Particulars Dr 06-Jan Cash $18,000.00 Shares of Sachs Inc Gain on sale of shares eing 400 shares sold for S45 per share and c S 17,200.00 S 800.00 g cost is S43 per share) 03-Feb Shares of Jackson c ation Dr S31,500.00 Cash eing 700 shares purchased @45 per share S 31,500.00 31-Mar Cash S 2,500.00 Dividend revenue eing dividend receive S 2,500.00 31-Mar Loss on valuation of shares S 1,900.00 500 shares @S1 Shares in Keene c Shares in Jackson corporation (700 shares aS2 per share S 500.00 S 1,400.00 valuation made at cost or fair value whichever is less 14-Apr Shares in $15,600.00 Cash S 15,600.00 300 shares preferred stock of chased @S52 per share 1-Mayl Cash $16,800.00 S 400.00 Loss on sale of shares Shares in Sachs Inc Being 400 shares sold at a loss of S1 per share which is having c S17,200.00 g value of S43 per share 30-Jun Cash S 2,800.00 S 2,800.00 Dividend revenue eing dividend amount receive 30-Jun Loss on valuation of shares S 1,000.00 Shares in Bacon c Shares in (400 shares @s1) 300 shares @S2 S 400.00 S 600.00 (Being valuation made at cost or fair value whichever is less 30-Jun Shares in Keenec 500 shares @$1 S 500.00 S 1,400.00 Shares in Jackson corporation (700 shares aS2 per share Profit on valuation of shares S 1,900.00 (Being valuation made at cost or fair value whichever is less)

Solution:2 ration r the following in income statement Quarter -I Dividend revenue received Gain on sale of investment Loss on valuation of Shares 2,500 S800 $1,900 er 2,800 Dividend revenue received Net Gain on valuation of investment ($1900-S1000) S900 Loss on sale of Shares $400 Solution :3 ation f s following investment Quarter Carrying Value Cost or Fair Value whichever is Cost Per Share Fair Value Per Share Total Cos Fair Value lower 500 Shares in Keene C 400 Shares in Sachs Inc 400 Shares in Bacon C 700 Shares in Jackson c 60.00 S 43.00 S 70.00 S 45.00 S 59.00 S30,000.00 |$29,500.00 |S29,500.00 45.00 $17,200.00 $18,000.00 $17,200.00 70.00 S28,000.00$28,000.00 |S28,000.00 43.00S31,500.00 S30,100.00 S30,100.00 Quarter Carrying Cost Fair value value 500 Shares in Keene C 400 Shares in Bacon C 700 Shares in Jackson c 300 Shares in Quinn Company 60.00 S 70.00 S 45.00 S 52.00S 62.00 S30,000.00 S31,000.00 S30,000.00 69.00 $28,000.00 $27,600.00 |$27,600.00 46.00 S31,500.00 S32,200.00 |S31,500.00 50.00 S15,600.00 S15,000.00 S15,000.00