Menu
support@businesspapershelp.com
+1(805) 568 7317

question reporting of and analyzing financial effects of trading equity securities g 4291376

Question

Reporting of and Analyzing Financial Effects of Trading (Equity) Securities

Guay Company had the following transactions and adjustment related to a stock investment classified as a trading security.

2015

Nov. 15

Purchased 5,000 shares of Core, Inc.'s common stock at $16 per share plus a   brokerage commission of $900. Guay Company expects to sell the stock in the near future.

Dec. 22

Received a cash dividend of $1.25 per share of common stock from core.

Dec. 31

Made the adjusting entry to reflect year-end fair value of the stock investment in Core. The year-end market price of the Core common stock is $17.50 per share.

2016

Jan. 20

Sold all 5,000 shares of the Core common stock for $86,400.

Prepare journal entries to record these transactions.

Nov. 15

Purchased 5,000 shares of Core, Inc.'s common stock at $16 per share plus a   brokerage commission of $900. Guay Company expects to sell the stock in the near future.

Dec. 22

Received a cash dividend of $1.25 per share of common stock from core.

Dec. 31

Made the adjusting entry to reflect year-end fair value of the stock investment in Core. The year-end market price of the Core common stock is $17.50 per share.

 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now