At December 31, 2010, Weston Manufacturing Co. owned the following investments in capital stock of publicly traded companies (classified as available-for-sale securities): Cost Current Market Value Footlocker, Inc. (5,000 shares: cost, $17 per share; market value, $20). . . . . . . . . . . . . . . . $ 85,000 $100,000 The Gap, Inc. (4,000 shares: cost, $17 per share; market value, $15) . . . . . . . . . . . . . . . . . . . 68,000 60,000 $153,000 $160,000 In 2011, Weston engaged in the following two transactions: Apr. 10 Sold 1,000 shares of its investment in Footlocker, Inc., at a price of $21 per share, less a brokerage commission of $50. Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $14 per share, less a brokerage commission of $60. At December 31, 2011, the market values of these stocks were: Footlocker, Inc., $18 per share; and The Gap, Inc., $16 per share. Prepare journal entries to record the transactions on April 10 and August 7.
At December 31, 2010, Weston Manufacturing Co. owned the following investments in capital
stock of publicly traded companies (classified as available-for-sale securities):
Cost Current Market Value
Footlocker, Inc. (5,000 shares: cost,
$17 per share; market value, $20). . . . . . . . . . . . . . . . $ 85,000 $100,000
The Gap, Inc. (4,000 shares: cost, $17
per share; market value, $15) . . . . . . . . . . . . . . . . . . . 68,000 60,000
$153,000 $160,000
In 2011, Weston engaged in the following two transactions:
Apr. 10 Sold 1,000 shares of its investment in Footlocker, Inc., at a price of $21 per share, less
a brokerage commission of $50.
Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $14 per share, less a
brokerage commission of $60.
At December 31, 2011, the market values of these stocks were: Footlocker, Inc., $18 per share;
and The Gap, Inc., $16 per share.
Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
