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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text: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

Transcribed Image Text:Computer Project
FINANCIAL REPORTING II - SUMMER 2021
As a recently hired accountant for Reeves Incorporated., you are provided with last year's balance sheet to
familiarize yourself with the business.
Reeves Incorporated
Balance Sheet
December 31, 2020
Assets
Current Assets
$1,054.312
123,200
738,054
578,366
82,310
$2,576,242
Cash
Accounts Receivable
Short-term Investments
Inventories
Prepaid Expenses
Total Current Assets
Property, plant and equip (net)
Intangibles and other assets
832,400
692,175
Total Assets
$4,100,817
Current Liabilities
Accounts payable
69,210
131,870
200,574
$401,654
Short-term notes
Other current liabilities
Total Current Liabilities
Long-term debt
1,962,357
$2,364,011
Total Liabilities
Stockholders' Equity
Common Stock
1,421,300
315,506
Retained Earnings
Total Stockholder's Equity
$1,736,806
Total liabilities + Stockholder's $4,100,817
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education