2. Reeves Incorporated buys and sells securities expecting to earn profits on short-term differences in price.They had the following transactions during 2021:April 1 Purchased 100,000 shares of Apple stock for $1,600,000June 1 Received cash dividend of $20,000 from AppleDec 31 The stock price of the Apple was $19.50 per share on December 31st.Required:Record the April 1st and June 1st transactions. Make any necessary adjusting entry at the end of the fiscalyear December 31, 2021 due to the change in stock price Computer ProjectFINANCIAL REPORTING II - SUMMER 2021As a recently hired accountant for Reeves Incorporated., you are provided with last year's balance sheet tofamiliarize yourself with the business.Reeves IncorporatedBalance SheetDecember 31, 2020AssetsCurrent Assets$1,054.312123,200738,054578,36682,310$2,576,242CashAccounts ReceivableShort-term InvestmentsInventoriesPrepaid ExpensesTotal Current AssetsProperty, plant and equip (net)Intangibles and other assets832,400692,175Total Assets$4,100,817Current LiabilitiesAccounts payable69,210131,870200,574$401,654Short-term notesOther current liabilitiesTotal Current LiabilitiesLong-term debt1,962,357$2,364,011Total LiabilitiesStockholders' EquityCommon Stock1,421,300315,506Retained EarningsTotal Stockholder's Equity$1,736,806Total liabilities + Stockholder's $4,100,817

Investment in shares - Investment in shares is the current assets for the purchaser. It generates…

2. Reeves Incorporated buys and sells securities expecting to earn profits on short-term differences in price. They had the following transactions during 2021: April 1 Purchased 100,000 shares of Apple stock for $1,600,000 June 1 Received cash dividend of $20,000 from Apple Dec 31 The stock price of the Apple was $19.50 per share on December 31st. Required: Record the April 1st and June 1st transactions. Make any necessary adjusting entry at the end of the fiscal year December 31, 2021 due to the change in stock price

2. Reeves Incorporated buys and sells securities expecting to earn profits on short-term differences in price. They had the following transactions during 2021: April 1 Purchased 100,000 shares of Apple stock for $1,600,000 June 1 Received cash dividend of $20,000 from Apple Dec 31 The stock price of the Apple was $19.50 per share on December 31st. Required: Record the April 1st and June 1st transactions. Make any necessary adjusting entry at the end of the fiscal year December 31, 2021 due to the change in stock price

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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