Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

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.
Instructions

(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

Accounting theory and current issuesbio-sustainable feeds

Accounting Theory and current issues Bio-sustainable Feeds (BSF) Ltd., an Australian bio-research firm listed on the Australian Stock Exchange (ASX), has engaged research on sustainable aqua-culture feeds for two decades ...

Lamp light company maintains and repairs warning lights

Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2016, the end of the fisca ...

Accounting standardsguidelines for literature

Accounting Standards Guidelines for Literature Critiques Students must submit a critique of the following academic articledeemed to be seminal to their main area of research. Details about the format, structure and asses ...

In your accounting career you will be required to analyse

In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are ...

During the month a company started 300000 units of product

During the month a company started 300,000 units of product in a particular manufacturing process. The beginning work in process inventory was 50,000 units, and the ending inventory was 40,000 units. Direct materials are ...

Imagine that you are a tax consultant and must determine

Imagine that you are a tax consultant and must determine the most appropriate business structure for a small business entity. Compare and contrast S-Corporations, C-Corporations, and Partnerships in terms of tax conseque ...

The morgan family lives in massachusetts they moor their

The Morgan family lives in Massachusetts. They moor their sailboat in Rhode Island. What might be a plausible reason for the possible inconvenience? Is the breadth and number of Federal excise taxes increasing or decreas ...

Accounting for business decisions group assignment the

Accounting for Business Decisions Group Assignment The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage ...

Accounting information systems assignment-the processes of

ACCOUNTING INFORMATION SYSTEMS ASSIGNMENT- 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 ...

Assignmentapplication transfer pricing decisionsas a

Assignment Application: Transfer Pricing Decisions As a manager, you may be tasked with making recommendations as to how your organization should structure its transfer pricing. This is especially true in cases when both ...

  • 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