REQUIRED:Make the journal entry recorded by Bramble at September 30, 2017 to adjust the portfolio to market?Prepare journal entries for all purchases, sales and adjusting entries related to the portfolio for the fourth quarter of 2017.How will the investments be reported on the balance sheet at December 31, 2017? PROBLEMBramble Corp. has the following portfolio of securities acquired for trading purposesand accounted for using the FV-NI model at September 30, 2017, the end of thecompany's third quarter:Investment45,000 common shares of Yuen Inc.2,700 preferred shares of Monty Ltd.1,100 common shares of Oakwood Inc.Cost$229,500102,60099,000Fair Value$180,000108,00098,450On October 8, 2017 (4th quarter), the Yuen shares were sold for $5.10 per share. OnNovember 16, 2017, 3,000 common shares of Patriot Corp. were purchased at $43.30per share. Bramble pays a 1% commission on purchases and sales of all securities.At the end of the fourth quarter, on December 31, 2017, the fair values of the sharesheld were as follows: Monty $101,300; Patriot $115,500; and Oakwood $111,650.Bramble prepares financial statements every quarter.

Investments are recorded in the balance sheet under the head Assets. The investments are recorded at…

Answered: Make the journal entry recorded by…

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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REQUIRED:

Make the journal entry recorded by Bramble at September 30, 2017 to adjust the portfolio to market?
Prepare journal entries for all purchases, sales and adjusting entries related to the portfolio for the fourth quarter of 2017.
How will the investments be reported on the balance sheet at December 31, 2017?

PROBLEM
Bramble Corp. has the following portfolio of securities acquired for trading purposes
and accounted for using the FV-NI model at September 30, 2017, the end of the
company's third quarter:
Investment
45,000 common shares of Yuen Inc.
2,700 preferred shares of Monty Ltd.
1,100 common shares of Oakwood Inc.
Cost
$229,500
102,600
99,000
Fair Value
$180,000
108,000
98,450
On October 8, 2017 (4th quarter), the Yuen shares were sold for $5.10 per share. On
November 16, 2017, 3,000 common shares of Patriot Corp. were purchased at $43.30
per share. Bramble pays a 1% commission on purchases and sales of all securities.
At the end of the fourth quarter, on December 31, 2017, the fair values of the shares
held were as follows: Monty $101,300; Patriot $115,500; and Oakwood $111,650.
Bramble prepares financial statements every quarter.

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