Ask Question, Ask an Expert


Ask Accounting Basics Expert

In January 2012, management of Stefan Company concludes that it has enough cash to allow some short-term investments in debt and stock securities. During the year, the following transactions occurred.

Feb. 1   Purchased 600 shares of Superior common stock for $31,800, plus brokerage fees of $600.
Mar. 1   Purchased 800 shares of Pawlik common stock for $20,000, plus brokerage fees of $400.
Apr. 1    Purchased 50 $1,000, 7% Venice bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1.
July 1    Received a cash dividend of $0.60 per share on the Superior common stock.
Aug. 1   Sold 200 shares of Superior common stock at $58 per share less brokerage fees of $200.
Sept. 1  Received $1 per share cash dividend on the Pawlik common stock.
Oct. 1   Received semiannual interest on the Venice bonds.
Oct. 1   Sold the Venice bonds for $50,000 less $1,000 brokerage fees.

At December 31, the fair value of the Superior common stock was $55 per share. The fair value of the Pawlik common stock was $24 per share.

(a)  Journalize the transactions and post to accounts Debt Investments and Stock Investments. (Use the T-account form.)(a) Gain on stock sale $600 use T-account form

(b)  Prepare the adjusting entry at December 31, 2012, to report investment securities at fair value. All securities are considered to be trading securities.

(c)  Show balance sheet presentation of investment securities at December 31, 2012.

(d)  Identify income statement accounts and provide the statement classification of each account.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91863

Have any Question? 

Related Questions in Accounting Basics

A strong 1 page paper with references forbased on the

A strong 1 page paper with references for Based on the scenario presented in the Learning Team Instructions, write a 1-page report on your IT Audit and Control Analysis Plan. Draft answers to the following: • Why conduct ...

Where does the researcher finda authoritative us gaap

Where does the researcher find: a. Authoritative U.S. GAAP sources? b. Non authoritative U.S. GAAP sources?

Business administration managemntamp commercial sciences

BUSINESS ADMINISTRATION, MANAGEMNT& COMMERCIAL SCIENCES ACCOUNTING 512 ASSIGNMENT The purpose of an assignment is to ensure that the Learner is able to: Demonstrate an understanding of accounting principles. Systematical ...

Changes in accounting principles and changes in accounting

"Changes in Accounting Principles and Changes in Accounting Estimates" Please respond to the following: • From the e-Activity, discuss the accounting principles that the identified company changed, and explain the major ...

1 the ultimate responsibility for the formulation of

1) The ultimate responsibility for the formulation of financial reporting rules in the US rests with: a. Congress b. Financial accounting standards board c. IRS d. Securities & exchange commission 2) In countries where t ...

Legal regulation of business structures assignment-

LEGAL REGULATION OF BUSINESS STRUCTURES ASSIGNMENT- QUESTION Dr Dawes declared personal bankruptcy on 28 February 2016 and he remains un-discharged.  He informed the board of GML (refer to the facts of this company in yo ...

Rauacutel esparza the ecommerce manager for moonlight mugs

Raúl Esparza, the ecommerce manager for Moonlight Mugs, a company that sells customized coffee mugs, would like to send information to another company that maintains the warehouse and provides shipping services. Order in ...

Practice questionswhy is a balance sheet claimed to be a

Practice questions: Why is a balance sheet claimed to be a statement of the financial position of a business? What limitations do you think it has?

Please show your work a treasury bond that matures in 7

Please show your work. A Treasury Bond that matures in 7 years has a yield of 5.15%. A 7 year corporate bond has a yield of 7.15%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk ...

1 tonys pizza has total sales of 786611 and costs of 524268

1. Tony's Pizza has total sales of $786,611 and costs of $524,268. Depreciation is $38,470 and the tax rate is 31 percent. The firm does not have any interest expense. What is the operating cash flow? 2. A company purcha ...

  • 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