GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter A, Problem 3E
Recording Transactions in the Available-for-Sale Securities Portfolio
On June 30, 2016, Slick Rocks, Inc., purchased 7,000 shares of Sandstone stock for $15 per share. Management recorded the stock in the available-for-sale securities portfolio. The following information pertains to the price per share of Sandstone stock:
| Price | |
| 12/31/2016 | $17 |
| 12/31/2017 | 14 |
| 12/31/2018 | 18 |
Slick Rocks sold all of the Sandstone stock on February 14, 2019, at a price of $20 per share. Prepare any
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On December 31, 2017, Nameless Inc. provided you with the following information regarding its trading securities.
December 31, 2017
Investments (Trading) Cost Fair Value
SKN Inc. stock $ 40,000 $ 46,000
Derby Co. stock 101,000 99,500
Google Corp. stock 31,000 34,500
Total of portfolio $172,000 $ 180,000
All of the securities were purchased during 2017 and < 20% of total share of the company.
During 2018, Nameless sold its Google Corp. stock for $33,200. The fair value of the stock on December 31, 2018, was: SKN Inc. stock—$47,600; Derby Co. stock—$95,400.
(3a) Prepare the adjusting journal entry needed on December 31, 2017.
(3b) Prepare the journal entry to record the sale of the Google Corp. stock during 2018.
(3c) Prepare the adjusting journal entry needed on December 31, 2018.
Accounting
Swifty Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2020, the end of the company’s third quarter:
Investment
Cost
Fair Value
53,000 common shares of Yuen Inc.
$355,100
$212,000
4,300 preferred shares of Monty Ltd.
163,400
172,000
1,900 common shares of Oakwood Inc.
171,000
170,050
On October 8, 2020, the Yuen shares were sold for $6.70 per share. On November 16, 2020, 3,000 common shares of Patriot Corp. were purchased at $44.90 per share. Swifty pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2020, the fair values of the shares held were as follows: Monty $103,700; Patriot $119,500; and Oakwood $192,850. Swifty prepares financial statements every quarter.
(a)
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2020.…
(Equity Securities Entries) McElroy Company has the following portfolio of investment securities at September 30, 2017, its most recent reporting date.
Investment Securities
Cost
Fair Value
Horton, Inc. common (5,000 shares)
$215,000
$200,000
Monty, Inc. preferred (3,500 shares)
133,000
140,000
Oakwood Corp. common (1,000 shares)
180,000
179,000
On October 10, 2017, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2017. The December 31, 2017, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000.
InstructionsPrepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2017.
Chapter A Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. A - Prob. 1QCh. A - Explain the difference in accounting methods used...Ch. A - Explain how bonds held to maturity are reported on...Ch. A - Explain the application of the cost principle to...Ch. A - Under the fair value method, when and how does the...Ch. A - Under the equity method, why does the investor...Ch. A - Prob. 7QCh. A - Prob. 8QCh. A - Prob. 9QCh. A - Company X owns 40 percent of Company Y and...
Ch. A - Prob. 2MCQCh. A - Dividends received from stock that is reported as...Ch. A - Prob. 4MCQCh. A - Prob. 5MCQCh. A - When using the equity method of accounting, when...Ch. A - Prob. 7MCQCh. A - Prob. 8MCQCh. A - Which of the following is true regarding the...Ch. A - Prob. 10MCQCh. A - Matching Measurement and Reporting Methods Match...Ch. A - Prob. 2MECh. A - Prob. 3MECh. A - Prob. 4MECh. A - Prob. 5MECh. A - Prob. 6MECh. A - Prob. 7MECh. A - Prob. 8MECh. A - Prob. 9MECh. A - Prob. 10MECh. A - Prob. 11MECh. A - Prob. 1ECh. A - Prob. 2ECh. A - Recording Transactions in the Available-for-Sale...Ch. A - Prob. 4ECh. A - Prob. 5ECh. A - Reporting Gains and Losses in the Trading...Ch. A - Prob. 7ECh. A - Prob. 8ECh. A - Prob. 9ECh. A - Prob. 10ECh. A - Prob. 11ECh. A - Prob. 1PCh. A - Prob. 2PCh. A - Prob. 3PCh. A - Prob. 4PCh. A - Prob. 5PCh. A - Comparing Methods to Account for Various Levels of...Ch. A - Prob. 7PCh. A - Recording Investments for Significant Influence LO...Ch. A - Prob. 9PCh. A - Prob. 10PCh. A - Prob. 11PCh. A - Prob. 1APCh. A - Prob. 2APCh. A - Reporting Passive Investments During January 2017,...Ch. A - Prob. 4APCh. A - Prob. 5APCh. A - Prob. 6APCh. A - Prob. 1CONCh. A - Finding Financial Information Refer to the...Ch. A - Prob. 2CPCh. A - Prob. 3CPCh. A - Prob. 4CPCh. A - Prob. 5CPCh. A - Prob. 6CP
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