Question

Stewart Corporation's balance sheet at December 31, 2016, showed the following:    Short-term investments, at fair...

Stewart Corporation's balance sheet at December 31, 2016, showed the following:
   Short-term investments, at fair value               $40,000
Stewart Corporation's trading portfolio of stock investments consisted of the following at December 31, 2016:
       Stock       Number of Shares   Cost  
   Conn Common Stock   200   $28,000
   Hall Common Stock   300   9,000
           $37,000
During 2017, the following transactions took place:
   Feb.   5   Sold 100 shares of Conn common stock for $18,000.
   Mar.   30   Purchased 25 shares of Hall common stock for $1,000.
   Sept.   9   Purchased 50 shares of Hall common stock for $3,000.
At year-end on December 31, 2017, the fair values per share were:
   Fair Value per Share
   Conn Common Stock   $158
   Hall Common Stock   $24
Instructions
(a)   Prepare the journal entries to record the 2017 stock transactions.
(b)   Show how the stock investments will appear on Stewart Corporation's balance sheet at December 31, 2017.

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Answer #1

a

Date General Journal Debit Credit
05-02-2017 Cash    18,000.00
Stock investments (28,000/200 x 100)    14,000.00
Gain on Sale of iNvestment      4,000.00
30-03-2017 Stock Investments      1,000.00
Cash      1,000.00
09-09-2017 Stock Investments      3,000.00
Cash      3,000.00

b.

Short-term investments, at fair value -24,800

Working Note-

Stock FV Number of Shares Fair Value
Conn Common Stock       158.00       100.00    15,800.00
Hall Common Stock         24.00       375.00      9,000.00
   24,800.00
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