Purchases of common stock by jamison december 31 2016 Company Invested In Cost Fair Value Readfield 125,000 115,500 Lee 100,000 80,000 Stern 250,000 300,000 Jones 180,000 190,000 These are classified as trading security by jamison, who uses the portfolio approach During 2017 lee company's stock was sold for 102,000 and jamison purchased common stock of earnhart company at a cost of 163,300 at the end of 2017 the fair values of the trading securities are as follows readfield 111,800 stern 310,000 jones 171,600 earnhart 159,250 a) make the adjustment entry for the portfolio at december 31 2016 to report the fair value of investment in the balance sheet b) prepare the journal entry to record the sale of lee company's stock in jamisons book in 2017 c) prepare the journal entry to record the purchase of earnharts's common stock by jamison d) calculate the fair value of the portfolio as of december 31 2017 e) make the adjustment entry for the portfolio at december 31 2017 to report the fair value of investment in the balance sheet
Purchases of common stock by jamison december 31 2016
| Company Invested In | Cost | Fair Value |
| Readfield | 125,000 | 115,500 |
| Lee | 100,000 | 80,000 |
| Stern | 250,000 | 300,000 |
| Jones | 180,000 | 190,000 |
These are classified as trading security by jamison, who uses the portfolio approach
During 2017 lee company's stock was sold for 102,000 and jamison purchased common stock of earnhart company at a cost of 163,300
at the end of 2017
the fair values of the trading securities are as follows
readfield 111,800
stern 310,000
jones 171,600
earnhart 159,250
a) make the
b) prepare the
c) prepare the journal entry to record the purchase of earnharts's common stock by jamison
d) calculate the fair value of the portfolio as of december 31 2017
e) make the adjustment entry for the portfolio at december 31 2017 to report the fair value of investment in the balance sheet
Step by step
Solved in 3 steps with 2 images
