Pina Colada 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 50,500 common shares of Yuen Inc. $313,100 $202,000 3,800 preferred shares of Monty Ltd. 1,650 common shares of Oakwood Inc. 144,400 152,000 148,500 147,675 On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $44.40 per share. Pina Colada 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 $102,950; Patriot $118,250; and Oakwood $167,475. Pina Colada prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit SUPPORT
Pina Colada 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 50,500 common shares of Yuen Inc. $313,100 $202,000 3,800 preferred shares of Monty Ltd. 1,650 common shares of Oakwood Inc. 144,400 152,000 148,500 147,675 On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $44.40 per share. Pina Colada 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 $102,950; Patriot $118,250; and Oakwood $167,475. Pina Colada prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit SUPPORT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Pina Colada 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
50,500 common shares of Yuen Inc.
$313,100
$202,000
3,800 preferred shares of Monty Ltd.
1,650 common shares of Oakwood Inc.
144,400
152,000
148,500
147,675
On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp.
were purchased at $44.40 per share. Pina Colada 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 $102,950; Patriot $118,250; and
Oakwood $167,475. Pina Colada prepares financial statements every quarter.
(a)
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of
2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit
entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
SUPPORT
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