P16.3 Brondon Corp. purchased a put option on Mykia common shares on July 7, 2023, for $480. The put option is for 350 shares, and the strike price is $50. The option expires on January 31, 2024.The following data are available with respect to the put option:DateSept. 30, 2023Dec. 31, 2023Jan. 31, 2024InstructionsPrepare the journal entries for Brondon for the following dates:July 7, 2023: Invests in put option on Mykia shares.1September 30, 2023: Brondon prepares financial statements.1. December 31, 2023: Brondon prepares financial statements.January 31, 2024: Put option expires.Fair Value of Option$250100OMarket Price of Mykia Shares$56 per share$58 per share$62 per share

Common Shares As evidence of the funds invested in a corporation, common shares are granted to…

Answered: 16.3 Brondon Corp. purchased a put…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 1, 2021, the general ledger balance of Dolphin Inc.'s stock investment portfolio, which is classified as fair value through net income (FV-NI) is $284,900. On December 31, the controller determines that the fair value of this portfolio should be $312,600. The adjusting entry for the portfolio will include: Question 10 options: DR FV-NI investments $27,700 CR Cash FV-NI investments $27,700 CR FV-NI investments $27,700 DR Gain on investments $27,700
Suncor Energy Inc. (SU) shares are listed on the New York Stock Exchange. At 9:30 a.m. on January 14, 2016, these shares sold for $21.85 per share. The volatility on the returns of Suncor shares is approximately 24%. The following call and put option contracts were available for the months of January, February, and March: CALLS Strike/Expiry January 22, 2016 February 19, 2016 March 18, 2016 23 0.34 0.72 0.96 24 0.13 0.41 0.69 25 0.25 0.26 0.40 PUTS Strike/Expiry January 22, 2016 February 19, 2016 March 18, 2016 23 1.28 2.01 2.14 24 2.63 2.80 2.92 25 3.60 3.70 3.95 Each option contract involves 100 shares. The risk-free rates for these three expiration dates are 0.6%, 1%, and 1.2%. All three rates are continuously compounded. Given the information on Suncor shares and options above, construct a protective put using the 23-put with February expiration. Hold the protective put…
On May 1, 2020, Sunco Limited purchased a call option from Moonco Corporation. The option gave Sunco the right to purchase shares in a third company, Galaxy Company. Sunco settled the options in cash on June 16, 2020. Following are additional details pertaining to the option: Number of shares that can be purchased with the call option 7,400 Call option exercise price per share $ 10.03 Market price per share of Galaxy Company on May 1, 2020 $ 10.03 Price paid by Sunco to purchase the option $ 1,800 Market price per share of Galaxy Company on May 31, 2020 $ 11.24 Fair value of call option on May 31, 2020 $ 9,200 Market price per share of Galaxy Company on June 16, 2020 $ 11.29 Fair value of call option on June 16, 2020 $ 8,800 Sunco has a year end of May 31. Required: Prepare the journal entries required on the books of Sunco Limited on each of the…
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4- On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturity value of $600,000 for $637,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature January 1, 2024, with interest received December 31 of each year. Assume that Roosevelt elected the fair value option for this held-for-collection investment. Instructions (a). Prepare any entries necessary at December 31, 2019, assuming the fair value of the bonds is $640,000. (b). Prepare any entries necessary at December 31, 2020, assuming the fair value of the bonds is $625,000.
Shares Sold – Subscription Basis On January 1, 2020, Aylmer offered to sell some shares on a subscription basis. The offer was for fifty individuals to purchase 100 common shares each at $20 per share. 60% of the amount was paid on June 30,2020. That transaction was recorded properly in the accounting records of Aylmer. The remaining amount will be received on June 30, 2021. NOTE - There is not a spreadsheet in the Excel file. Review the trial balance. You should determine if an entry should be made or not and make the required entry(ies) as necessary in the Excel tab labelled “Journal Entries” Trial Balance Unadjusted Trial Balance At December 31, 2019 At December 31, 2020 Preferred Shares 500,000 500,000 Common Stock 1,000,000 1,500,000 Common Stock Subscribed 100,000 Retained Earnings 337,366 692,275
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Plz solve for A and B it’s timed!!
Question 31 Choose the correct answer from the choices.
View Policies Current Attempt in Progress The following information is available for Martinez Company at December 31, 2020, regarding its investments. Securities 500 shares of Runner Corporation common stock 7,400 shares of Sher-tor Corporation preferred stock (a) Prepare the adjusting entry (if any) for 2020, assuming the securities are classified as trading. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Unrealized Holding Gain or Loss - Equity Fair Value Adjustment Cost Fair Value $24,000 $39,000 593,000 564,000 $617,000 $603,000 Account Titles and Explanation Save for Later Debit (b) Prepare the adjusting entry (if any) for 2020, assuming the securities are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…
Yates Co. Purchased a put option on Dixon common shares on January 7, 2014, for $270. The put option is for 300 shares, and the strike price is $64. The option expires on July 31, 2014. The following data are available with respect to the put option: Date Market Price of Dixon shares Time Value of Put Option March 31, 2014 $60 per share $150 June 30, 2014 $62 per share 68 July 6, 2014 $58 per share 20 Reguired: Prepare the journal entries for Yates Co. for the following dates: a. January 7, 2014-Investment in put option on Dixon shares. b. March 31, 2014-Yates prepares financial statements. June 30, 2014-Yates prepares financial statements. с. d. July 6, 2014- Yates settles the put option on the Dixon shares.
Part B During 2023, the Nicklaus Corporation participated in three treasury shares transactions: On June 30, 2023, the corporation reacquires 200,000 shares for the treasury at a price of $12 a. per share. b. On July 3, 2023, 50,000 treasury shares are reissued at $15 per share. c. On September 30, 2023, 50,000 treasury shares are reissued at $10 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a statement of financial position prepared at September 30, 2023. (Assume that net profit for the second and third quarters combined was $3,000,000.)

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