Journal entries for trading investmentsGruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows:Issuing CompanyCostFair ValueGriffin Inc.$14,070$13,230Luck Company22,96021,350Wilson Company9,3009,490Total$46,330$44,070On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $15,610.Journalize the entries to record the following: If an amount box does not require an entry, leave it blank.a. The adjusting entry for the portfolio of trading securities on December 31, 20Y3.20Y3, Dec. 31b. The May 10, 20Y4, purchase of Carroll Inc. securities.20Y4, May 10c. The adjusting entry for the portfolio of trading securities on December 31, 20Y4. Assume that except for the purchase of Carroll Inc. securities there were no other transactions involving trading securities in 20Y4. In addition, assume that the fairvalue of the portfolio of trading securities on December 31, 20Y4, is $74,290.20Y4, Dec. 31d. What amount should be reported for trading investments on the December 31, 20Y4, balance sheet?

Journal entries refer to recording and classifying business transactions into books of accounts…

Answered: lournalize the entries to record the…

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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Enumerate the following; 32. Provides for recognition of an equal amount of premium or discount amortization each period. 33. Bonds that mature in one lump sum at a specified future date. 34. Bonds that provide for conversion into some other security at the option of the stockholder. 35. Bonds that mature in a series of installments at future dates. 36. The difference between the face value and the sales price when bonds are sold below their face value. 37. Bonds for which assets are pledged to guarantee repayment. 38. Obligations that are not expected to be paid in cash within one year or the normal operating cycle. 39. Bonds that do not bear interest but instead are sold at significant discounts providing the investor with a total interest payoff at maturity. 40. Costs incurred by the issuer for legal services, printing and engraving, taxes, and underwriting in connection with the sale of a…
Tr.17.
Realized gains and losses are recorded on the incomestatement for which of the following transactions in trading securities and available-for-sale securities?a. When adjusting trading securities to fair value.b. When adjusting available-for-sale securities to fair value.c. Only when recording the sale of trading securities.d. When recording the sale of either trading securities oravailable-for-sale securities
Please explain in detail
How do you journalize the issuance of stock at par, t premium, and at discount.
Prepare Hertog Company's journal entries to record the following transactions for the current year. May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,990. June 6 Sells its entire investment in Kraft bonds for $11,510 cash. View transaction list Journal entry worksheet 1 2 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,990. Note: Enter debits before credits. Date May 07 Record entry General Journal Clear entry Debit Credit View general journal >
Consider the relative liquidity of the following assets: Assets 1. A bond issued by a publicly traded company 2. The funds in a money market account 3. A $20 bill 4. Your truck Select the assets in order o Most Liquid Second-Most Liquid Third-Most Liquid Least Liquid Bond 520.00 bill Truck Funds held in a money market account quid.
Shamrock Company has the following data at December 31, 2020 for its securities. Securities Trading Available-for-sale Cost $100,800 82,880 Fair Value $104,160 76,160
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Prepare journal entries to record the following transactions involving short-term debt investments.
You are in charge of auditing PLM (PopoyLangMalakas) Company's investment accounts for the year ended December 31, 2021, which was incorporated last March 3, 2020. During the course of the audit, you have obtained the balances and the related journal entries of its investment related transactions and have revealed the following information: Investment in Bonds P101,258 Investment in Stocks 62,400 Total P163,658 Journal Entries: Investment in bonds - 10% treasury bonds from the Banko Sentral ng Pilipinas. The investment is in a portfolio which has the objective of collecting contractual cash flows. Date Account Debit Credit July 1, 2020 Investment in BSP bonds 105, 242 Cash 105, 242 To record the acquisition of P100,000 face value BSP bonds December 31, 2020 Unrealized Gain / (Loss) on market changes 2,242 Investment in BSP bonds…
From the dropdown box beside each numbered balance sheet item, select the option of its balance sheet classification. If the item should not appear on the balance sheet, choose the option "No item required" from the selection choices.

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