Ask Question, Ask an Expert


Ask Accounting Basics Expert

Q1) At December 31, 2007, Western trading Co. owned given investments in capital stock of publicly owned companies (all classified as available-for-sale securities).

Supplies, Inc. (4,000 shares: cost $30 per share; market value, $45):

a. Demonstrate presentation of marketable securities in Western's balance sheet at December 31, 2007.

b. In 2008, Western engaged in given transaction.
Feb. 2 buy 2,000 shares from Supplies, Inc. at same price of $30 per share, plus brokerage commission amount of $300.June 6 Sold 2,500 shares of supplies Inc. stock at price of $50 per share, less a brokerage commission of $250. Sept. 25 Sold 1,000 shares of supplies Inc. stock at price of $25 per share, less brokerage commission of $200.Dec. 31 Investment earns $0.50 per share dividend on its 6,000 shares. Make journal entries for above transactions.

c. At December 31, 2008, market values of remaining stocks were $55 per share. Make "mark-to-market" adjusting entry required at December 31, 2008.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917249

Have any Question? 

Related Questions in Accounting Basics

Practice questionskerry melrose has a conference organising

Practice questions: Kerry Melrose has a conference organising business and is thinking of buying some computer-controlled audio visual equipment. She has done her calculations on a cash basis and has discovered that the ...

Accounting for managers- shareholders and lenders whilst

Accounting for Managers- Shareholders and lenders, whilst not being the only stakeholders, provide capital to companies because they seek a return commensurate with the level of risk that they are willing to take. You ar ...

The processes of selecting an aiserp to make informed

The processes of selecting an AIS/ERP to make informed decision for investment in an accounting software Group Assignment Scenario B Bakery is a family owned firm with around 70 employees and sales revenue increased to m ...

Treatment of intangible assets and impairmentsdetermine

Treatment of Intangible Assets and Impairments Determine accounting alternatives for intangibles. There are a number of differences between IFRS and U.S. GAAP for the treatment of intangible assets and impairments. The i ...

Horizontal and vertical analysisfor this assignment due in

Horizontal and Vertical analysis For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks' accounts receivable, fixed assets, and debt financing. Use basic financial a ...

Partnership characteristicsindicate whether each statement

Partnership Characteristics Indicate whether each statement below is a reflection of (a) voluntary association, (b) a partnership agreement, (c) limited life, (d) mutual agency, or (e) unlimited liability. 1. A written c ...

Estimating cash flowsassume that your company is

Estimating Cash Flows Assume that your company is considering the replacement of an automated milling machine with one of the new machines offered by three different manufacturers. Each of the three machines under consid ...

Bull what does it mean to create a culture of honesty

• What does it mean to create a "Culture of Honesty, Openness, and Assistance?" Give an example from an organization with which you have been affiliated. • Codes of Conduct and Conflict of Interest Forms are often called ...

Learning objective 1 explain accounting language consider

(Learning Objective 1: Explain accounting language) Consider Wal-Mart, a large retailer. Classify the following items as an Asset (A), a Liability (L), or Stockholders' Equity (S) for Wal-Mart: a. Accounts payable b. Com ...

Question 1 75000 year needed during retirementretirement

Question 1. $75,000 /year needed during retirement Retirement will last 25 years 30 years until retirement 6.0% return before and during retirement 3.25% inflation rate - Use the present value of an annuity (annuity due) ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate