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

See similar textbooks

Similar questions

On August 1, 2022, Colombo Company’s treasurer signed a note promising to pay $122,700 on December 31, 2022. The proceeds of the note were $116,100. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. What is the discount on notes payable and what is the interest expense?
Pronghorn Corp purchased 2,100 shares of its $10 par value common stock for $79,800 on August 1. It will hold these in the treasury until resold. Journalize the treasury stock transaction. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 1
ANSWER?
Brooks Company purchases debt investments as trading securities at a cost of $56,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $63,000. Exercise 15-3 (Algo) Financial statement impact of trading securities LO P1 Brooks sells a portion of its trading securities (costing $28,000) for $29,750 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or −) for each transaction. 1. 1. 2. 3. 3. Debt Investments - Trading Cash Assets (+) increase (-) decrease (+) increase 56,000 56,000 = = = = = X Answer is not complete. Liabilities + + + + + Retained earnings Equity X (+) increase × 1,750 X
Please do not give solution in image format ?. And explain proper steps by Step.?
Company X purchased trading securities in February. Company Y purchased available-for-sale securities in February as well, and it plans to sell them before December. Company Z purchased available-for-sale securities and is planning to hold onto them for at least two years. What is implied here? 1. Company X and Company Y will report their securities under current assets on the balance sheet, while Company Z will report their securities immediately below current assets in the investments section. 2. Company X will report their securities under current assets on the balance sheet, while Company Y and Company Z will report their securities immediately under current assets in the investments section. 3. Company X and Company Y will report their securities under current assets, while Company Z will report their securities under current liabilities. 4. Company X, Y, and Z will all report their securities under current assets on the balance sheet.
Prepare journal entries to record the following investment-related transactions of a company for its first year of operations: On May 4, the company purchased 600 shares of Orbital Company Stock at $140 per share as a short-term investment in an available-for-sale security. On July 1, received a $2.50 per share cash dividend on the Orbital Company stock purchased in transaction (a). On September 15, sold 250 shares of Orbital Company stock purchased in transaction (a) for $85 per share On October 15, sold 100 shares of Orbital Company stock purchased in transaction (a) for $185 per share
On December 12, 2024, an Investment in equity securities costing $84,000 was sold for $108,000. The total of the sale proceeds was credited to the Investment in equity securities account Required: 1. Prepare the Journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2024. (Ignore Income taxes.) 2. Prepare the journal entry to correct the error assuming It is not discovered until early 2025. (Ignore income taxes.)
During the month, Blue, Inc. purchased 1,050 shares for $7.00 per share and classified them as trading investments. At the end of the month, the price of the securities was $11.25 per share. What adjusting entry, if any, will Blue, Inc. record when it closes its books at the end of the month to reflect this change in value?ᐧ a Dr. Valuation Allowance for Trading Investments $11,812.50 Cr. Unrealized Gain on Trading Investments $11,812.50 b Dr. Unrealized Loss on Trading Investment $4,462.50 Cr. Valuation Allowance for Trading Investments $4,462.50 c Dr. Valuation Allowance for Trading Investments $4,462.50 Cr. Unrealized Gain on Trading Investments $4,462.50 Because the trading investments were not sold during the month, no adjusting entry is required. d Dr. Valuation Allowance for Trading Investments $4,462.50 Cr. Realized Gain on Trading Investments $4,462.50
Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant influence over Higo. June 2 Sells 140 shares of its investment in Higo stock ($6,020 cost) at $46 per share. December 31 The closing market price (fair value) of the Higo stock is $41 per share. View transaction list Journal entry worksheet 1 2 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant influence over Higo. Date May 09 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal
Trader Investments completed the following investment transactions during 2024: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Trader's investment transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required, select "No entry required" on the first line of the Accounts column and leave the remaining cells blank.) Jan. 14: Purchased 1,000 shares of Neutron stock, paying $53 per share. The investment represents 4% ownership in Neutron's voting stock. Trader does not have significant influence over Neutron. Trader intends to hold the investment for the indefinite future. Date Credit Accounts Jan. 14 Requirements 1. Journalize Trader's investment transactions. Explanations are not required. 2. Classify and prepare a partial balance sheet for Trader's Neutron investment as of December 31, 2024. 3. Prepare a partial income statement for Trader Investments for…
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31: Record these transactions on page 10: Year 1 Jan. 22 Purchased 22,000 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission. Mar. 8 Received a cash dividend of $0.22 per share on Sankal Inc. stock. Sep. 8 A cash dividend of $0.25 per share was received on the Sankal stock. Oct. 17 Sold 3,000 shares of Sankal Inc. stock at $16 per share less a brokerage commission of $75. You are in Column Year 1Dec. 31 Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $25 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. Record these transactions on page 11: Year 2…