Question Ophir Investments Inc. is a regional investment company thatbegan operations on January 1, 2014. The following transactionsrelate to trading securities acquired by Ophir Investments Inc.,which has a fiscal year ending on December 31: 2014 Feb. 3. Purchased 2,200 shares of Mapco Inc. as a trading security at$27 per share plus a brokerage commission of $440. Mar. 23. Purchased 1,100 shares of Swift Inc. as a trading security at$11 per share plus a brokerage commission of $220. May 19. Sold 500 shares of Mapco Inc. for $28 per share less an $70brokerage commission. June 12. Received an annual dividend of $0.15 per share on Mapcostock. Dec. 31. The portfolio of trading securities was adjusted to fair valuesof $31 and $12 per share for Mapco Inc. and Swift Inc.,respectively. 2015 Apr. 9. Purchased 1,000 shares of Corvair Inc. as a trading security at$32 per share plus a $150 brokerage commission. June 15. Received an annual dividend of $0.18 per share on Mapco Inc.stock. Aug. 30. Sold 200 shares of Corvair Inc. for $26 per share less a $60brokerage commission. Dec. 31. The portfolio of trading securities had a cost of $84,280 andfair value of $81,200, requiring a credit balance in ValuationAllowance for Trading Investments of $3,080 ($84,280 - $81,200).Thus, the debit balance from December 31, 2014 is to be adjusted tothe new balance. Required: 1. Journalize the entries to record thesetransactions. For a compound transaction, if an amount box does notrequire an entry, leave it blank. In your computations, round pershare amounts to two decimal places. When required, round finalanswers to the nearest dollar.
Question
Ophir Investments Inc. is a regional investment company thatbegan operations on January 1, 2014. The following transactionsrelate to trading securities acquired by Ophir Investments Inc.,which has a fiscal year ending on December 31:
2014
|
Feb. 3. |
Purchased 2,200 shares of Mapco Inc. as a trading security at$27 per share plus a brokerage commission of $440. |
|
Mar. 23. |
Purchased 1,100 shares of Swift Inc. as a trading security at$11 per share plus a brokerage commission of $220. |
|
May 19. |
Sold 500 shares of Mapco Inc. for $28 per share less an $70brokerage commission. |
|
June 12. |
Received an annual dividend of $0.15 per share on Mapcostock. |
|
Dec. 31. |
The portfolio of trading securities was adjusted to fair valuesof $31 and $12 per share for Mapco Inc. and Swift Inc.,respectively. |
|
2015 |
|
|
Apr. 9. |
Purchased 1,000 shares of Corvair Inc. as a trading security at$32 per share plus a $150 brokerage commission. |
|
June 15. |
Received an annual dividend of $0.18 per share on Mapco Inc.stock. |
|
Aug. 30. |
Sold 200 shares of Corvair Inc. for $26 per share less a $60brokerage commission. |
|
Dec. 31. |
The portfolio of trading securities had a cost of $84,280 andfair value of $81,200, requiring a credit balance in ValuationAllowance for Trading Investments of $3,080 ($84,280 - $81,200).Thus, the debit balance from December 31, 2014 is to be adjusted tothe new balance. |
Required:
1. Journalize the entries to record thesetransactions. For a compound transaction, if an amount box does notrequire an entry, leave it blank. In your computations, round pershare amounts to two decimal places. When required, round finalanswers to the nearest dollar.
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