On August 1, Ivanhoe Company buys 2400 shares of Zingo common stock for $75000 cash. On December 1, the stock investments aresold for $86250 in cash. Which of the following are the correct journal entries of record for the purchase and sale of the commonstock?Aug. 1Stock InvestmentsCashDec. 1CashStock InvestmentsGain on Sale of StockInvestmentsо7500075000862507500011250Aug. 1Stock Investments75000Cash75000Dec. 1Stock Investments86250Cash72850Gain on Sale of Stock11000InvestmentsAug. 1Cash75000Stock Investments75000Dec. 1Stock Investments86250Cash75000Gain on Sale of Stock11250InvestmentsAug. 1Cash75000Stock Investments75000Dec. 1Cash86250Stock Investments75000Gain on Sale of Stock11250Investments

The first one. Date Account Debit Credit Aug 1 Stock Investments 75,000.00 Cash 75,000.00…

Answered: On August 1, Ivanhoe Company buys 2400…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
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Agustin Company has the following transactions relating to its investments during 2022. January 5 - Acquired 10,000 shares of Abalos Company for P1,000,000 paying additional P20,000 for brokerage fee and another P5,000 for commission. Received dividends from Abalos declared January 2, 2022 to stockholders of record January 10, 2022, P20,000. How much should the investment account be debited if the shares are held for trading?
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please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.
Flounder Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 47,500 common shares of Yuen Inc. $266,000 $190,000 3,200 preferred shares of Monty Ltd. 121,600 128,000 1,350 common shares of Oakwood Inc. 121,500 120,825 On October 8, 2023, the Yuen shares were sold for $5.60 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $43.80 per share. Flounder pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,050; Patriot $116,750; and Oakwood $137,025. Flounder prepares financial statements every quarter. (a) Your answer is partially correct. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023.…
Prepare the journal entry for the following trading securities investment transactions of Johnson Brothers Department Stores: (1)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the indefinite future. (ii)Received cash dividend of €1.40 per share on the Jefferson investment. (ii)At year-end, adjusted the investment account to fair market value of €40 per share. (iv)old the Jefferson shares for the market price of €20 per share.
Prepare the journal entry for the following trading securities investment transactions of Johnson Brothers Department Stores: (i)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the indefinite future. (ii)Received cash dividend of €1.40 per share on the Jefferson investment. (ii)At year-end, adjusted the investment account to fair market value of €40 per share. (iv)old the Jefferson shares for the market price of €20 per share.
io 1 TOYOTY Corporation acquired $5,500,000 par value, 12%, five-year bonds on their date of issue, January 1, 2019. The market rate at the time of issue was 8% and interest is paid semiannually on June 30 and December 31. Capitol will use the effective interest rate method to account for this investment. Capitol intends to hold the investment until the bonds mature. Table Present Value of $1 Periods 4% 6% 8% 12% 5 0.8219 0.7473 0.6806 0.5674 10 0.6756 0.5584 0.4632 0.3220 Table Present Value of an Ordinary Annuity Periods 4% 6% 8% 12% 5 4.4518 4.2124 3.9927 3.6048 10 8.1109 7.3601 6.7101 5.6502 Instruction: 1. Determine the purchase price of the investment in bonds. 2. Prepare the journal entry to record the acquisition of the bond investment. 3. Prepare the journal entry to record the interest income at June 30, 2019. 4. Prepare the journal entry to record the sale of the bonds at December 31, 2021 for $5,960,000.
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Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year 1, was as follows: 1 Name Number of Shares Total Cost Total Fair Value 2 Griffin Inc. 1,450.00 $29,000.00 $31,900.00 3 Luck Company 1,300.00 35,100.00 28,600.00 4 Wilson Company 860.00 30,960.00 26,660.00 5 Total $95,060.00 $87,160.00 On May 10, Year 2, Gruden Bancorp Inc. purchased 930 shares of Carroll Inc. at $25 per share plus a $170 brokerage commission. Required: A. Provide the journal entry to record the adjustment of the trading security portfolio to fair value on December 31, Year 1.* B. Provide the journal entry to record the May 10, Year 2, purchase of Carroll Inc. stock.* *Refer to the Chart of Accounts for exact wording of account titles.

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