Question
ABC Corporation is trading securities portfolio consisted of the following common stocks. &
- ABC Corporation is trading securities portfolio consisted of the following common stocks.
Cost Fair Value
Bud Corporation $ 46,500 $ 50,000
Heinken Inc. 60,000 58,000
Corona Corporation 80,000 76,400
Instructions: Record any necessary journal entries assuming the fair value account had a credit balance of $5,000 prior to this entry.
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Sheffield Corporation has the following securities in its portfolio of investments that are held for trading...
Sheffield Corporation has the following securities in its
portfolio of investments that are held for trading on December 31,
2021, Sheffield's year end (all investments are included in one
account Investments at FVTPL):
Investments
Carrying Amount
(before adjustment)
Fair Value
1,500 shares of David Jones Inc., common
$ 73,500
$
65,980
5,000 shares of Heam Corp., common
180,000
174,380
400 shares of Alessandro Inc., preferred
60,000
61,510
$313,500
$301,870
During 2022, Sheffield completed the following
transactions:
Mar. 1
Sold the...
Gilder Company has the following securities in its portfolio of trading equity securities on 12/31/17: &
Gilder Company has the following securities in its portfolio of
trading equity securities on 12/31/17:
Cost Fair
Value
5,000
shares of Diamond
Corp. $146,000 $126,500
10,000
shares of Culver
Co. 180,000 185,000
2,000
shares of Barbee
Co. 52,000 52,600
$378,000 $364,100
All of the securities had been
purchased in 2017.
In 2018, Gilder completed the
following securities transactions:
3/1 Sold
5,000 shares of Diamond Corp. @ $26 less fees of $1,500.
7/1 Bought
600 shares of Vogle Stores @ $42 plus fees of $550.
The Gilder Company portfolio...
Fair Value Journal Entries, Trading Investments Gruden Bancorp Inc. purchased a portfolio of trading securities during...
Fair Value Journal Entries, Trading Investments Gruden Bancorp
Inc. purchased a portfolio of trading securities during Year 1. The
cost and fair value of this portfolio on December 31, Year 1, was
as follows: Name Number of Shares Total Cost Total Fair Value
Griffin Inc. 1,150 $15,410 $14,490 Luck Company 750 24,600 22,880
Wilson Company 350 10,500 10,710 Total $50,510 $48,080 On May 10,
Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc.,
at $30 per share plus...
Brooks Co. purchases various investments in trading securities at a cost of $50,000 on December 27,...
Brooks Co. purchases various investments in trading securities
at a cost of $50,000 on December 27, 2017. (This is its first and
only purchase of such securities.) At December 31, 2017, these
securities had a fair value of $60,000.
1. & 3. Prepare the December 31, 2017, year-end
adjusting entry for the trading securities' portfolio and the
January 3, 2018, entry when Brooks sells a portion of its trading
securities (that had originally cost $25,000) for $27,500.
(If no entry...
Fair Value Journal Entries, Trading Investments Gruden Bancorp Inc. purchased a portfolio of trading securities during...
Fair Value Journal Entries, Trading Investments
Gruden Bancorp Inc. purchased a portfolio of trading securities
during Year 1. The cost and fair value of this portfolio on
December 31, Year 1, was as follows:
Name
Number of Shares
Total Cost
Total Fair Value
Griffin Inc.
1,600
$40,000
$44,800
Luck Company
1,250
37,500
33,750
Wilson Company
1,000
40,000
37,000
Total
$117,500
$115,550
On May 10, Year 2, Gruden Bancorp Inc. purchased 1,200 shares of
Carroll Inc. at $29 per share plus...
Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a...
Valuing Trading Securities at Fair Value
On January 1, Valuation Allowance for Trading Investments had a
zero balance. On December 31, the cost of the trading securities
portfolio was $68,600, and the fair value was $69,200.
Prepare the December 31 adjusting journal entry to record the
unrealized gain or loss on trading investments.
Dec. 31
fill in the blank 2
fill in the blank 4
PROBLEM II: Trading Securities MBS Corporation acquired as long-term investment $500 million of 8% bond on...
PROBLEM II: Trading Securities
MBS Corporation acquired as long-term investment $500 million of
8% bond on July 1, 2020. The market interest rate (yield) was 12%
for bonds of similar risk and maturity. MBS paid $450 million for
the bonds. The company will receive interest semiannually on June
30 and December 31. Company management is holding the bonds in its
trading portfolio. As a result of changing market condition, the
fair value of the bonds at December 31, 2020, was...
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018:...
Korman Company has the following securities in its portfolio of
equity securities on December 31, 2018:
Cost Fair Value
5,000 shares of Thomas Corp., Common $151,000 $139,000
10,000 shares of Gant, Common 184,000 190,000
$335,000 $329,000
All of the securities had been purchased in 2018. In 2019,
Korman completed the following securities transactions:
March 1 Sold 5,000 shares of Thomas Corp., Common @ $32 less
fees of $1,500.
April 1 Bought 600 shares of Werth Stores, Common @ $45 plus...
Martinez Company has the following securities in its portfolio on December 31, 2020. None of these...
Martinez Company has the following securities in its portfolio
on December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc., Common
$72,600
$68,600
5,000 shares of Wallace Corp., Common
174,800
169,400
400 shares of Martin, Inc., Preferred
55,600
57,300
$303,000
$295,300
All of the securities were purchased in 2020.
In 2021, Martinez completed the following securities
transactions.
March 1
Sold the 1,500 shares of Gordon, Inc., Common,...
During January 2017, Long Corporation for the first time decided to acquire some equity securities as...
During January 2017, Long Corporation for the first time decided
to acquire some equity securities as a means of putting some of its
idle cash to work. The securities are classified as trading
securities. At March 31, when Long prepares its first quarter
financial statements, the following information about the acquired
securities is available:
Securities
Cost
Market
1
$52,000
$50,000
2
32,000
29,000
3
35,000
27,000
Required:
a.
Prepare the journal entries to record the acquisition in January
and valuation...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 16 minutes ago
asked 30 minutes ago
asked 43 minutes ago
asked 53 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago