Shamel Company has the following portfolio of securities at April 30, 2020, its last reporting date. Trading Securities Cost/Book Fair Value Value Jahra Co. ordinary (2,000 shares) Hawali Co. ordinary (2,500 shares) Salmeya Corp. ordinary (3,000 shares) 1- On May. 20, 2020, the Jahra Co. shares were sold at a price of $150 per share. 2- In addition, 5,000 shares of Salem Co. common stock were acquired at $20 per share on Aug. 5, 2020. 3- The Dec. 31, 2020, fair values were Hawali $100,000, Salmeya Co. $180,000 and SalemCo. common $300,000. Instructions: $ 200,000 S 400,000 250,000 125,000 300,000 200,000 1- Evaluate the Portfolio at April 30, 2020 and prepare the necessary entries. 2- Prepare the necessary entries at May 20, 2020. 3- Prepare the necessary entries at August 5, 2020. 4- Evaluate the Portfolio on December 31, 2020 and prepare the necessary entries.

Shamel Company has the following portfolio of securities at April 30, 2020, its last reporting date. Trading Securities Cost/Book Fair Value Value Jahra Co. ordinary (2,000 shares) Hawali Co. ordinary (2,500 shares) Salmeya Corp. ordinary (3,000 shares) 1- On May. 20, 2020, the Jahra Co. shares were sold at a price of $150 per share. 2- In addition, 5,000 shares of Salem Co. common stock were acquired at $20 per share on Aug. 5, 2020. 3- The Dec. 31, 2020, fair values were Hawali $100,000, Salmeya Co. $180,000 and SalemCo. common $300,000. Instructions: $ 200,000 S 400,000 250,000 125,000 300,000 200,000 1- Evaluate the Portfolio at April 30, 2020 and prepare the necessary entries. 2- Prepare the necessary entries at May 20, 2020. 3- Prepare the necessary entries at August 5, 2020. 4- Evaluate the Portfolio on December 31, 2020 and prepare the necessary entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On January 1, 2020, Windsor Company issued 10-year, $ 2,010,000 face value, 6% bonds, at par. Each…

A: No. of potential shares = (Total face value of bonds / $1000) x 15 = (2010000/1000)*15 = 30150…

Q: Pronghorn Company has the following portfolio of investment securities at September 30, 2025, its…

A: Investments refer to investments made in stocks or shares or instruments of other entities and it…

Q: Cheyenne Corp. has the following securities in its portfolio of equity securities on December 31,…

A: Unrealized holding gain or loss = Cost - Fair Value Unrealized holding gain or loss = $334,000 -…

Q: Blossom Corporation has outstanding 2,100 $1,000 bonds, each convertible into 50 shares of $10 par…

A: Answer:- Journal entry:- A journal entry records the company's financial data into the sequential…

Q: (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)…

A: Diluted earnings per share is a financial metric that represents a company's earnings per share,…

Q: McElroy Company has the following portfolio of investment securities at September 30, 2025, its most…

A: Answer information:Step 1:DateAccounts TitleDebitCreditOct 10Cash (5,000 x $54)$270,000 Equity…

Q: Compute diluted earnings per share for 2020 Diluted earnings per share_______ b) Compute diluted…

A: Interest on bonds = Face value x rate of interest = $1,800,000 x 6% = $108,000 Saving in interest…

Q: On December 31, 2020, Dreamer Company reported as Available-for-sale securities: AT Company, 5,000…

A: Common stock represents ownership in a corporation. They have voting rights in the company's affairs…

Q: During its first year of operations, Cupola Fan Corporation issued 34,000 of $1 par Class B shares…

A: According to the given question, we are required to prepare the journal entries. Journal entries:…

Q: On January 1, 2021, Starlight Company converted $150,000 bonds into 90,000 shares of $1 par value…

A: The bonds are the financial instruments used by the business to raise money from the investors of…

Q: On January 1.2020, Sarasota Company issued 10-year. S1810.o00 face value, 6 bonds, at par. Each $100…

A: Calculation of diluted earnings per share: =[Net Income + Interest expenses after tax] / [Number of…

Q: Flint Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…

A: Bonds are a form of loan or debt being taken by the business. Bonds can be convertible or non…

Q: Un January 1, 2020, Coronado Company issued 10-year, $1,870,000 face value, 6% bonds, at par. Each…

A: Diluted earnings per share is the value per share after considering the impact of all the potential…

Q: Skysong Corporation had 135,600 shares of stock outstanding on January 1, 2020. On May 1, 2020,…

A: 1 January to 1 may =4 months 1 may to 1 jul=2 months 1 JUL to 1 oct=3 months 1 October to 31 dec=3…

Q: Pina Colada Corp. has the following portfolio of securities acquired for trading purposes and…

A: Adjusting entriesThe entries in the journal made to provide accurate balances for the reporting of…

Q: Windsor Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…

A: The following information given in the question: 1. Issued $3,840,000 of 11%, 10-year convertible…

Q: A company has outstanding 366 $1,000 bonds, each convertible into 28 shares of $12 par value common…

A: Bonds payable = 366 * $ 1000 = $ 366000 Common Stock = 366 * 28 shares * $ 12 par value = $ 122976

Q: /21. In which required item from the 10-K would this content be located? "During the 4th quarter…

A: Legal proceedings contain information relating to legal policies and legal matters Business contains…

Q: Splish Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par…

A: Bonds are a form of debt taken by the company. Convertible bonds are those bonds which can be…

Q: Teal Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…

Q: SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for…

Q: On July 1, 2019, an interest payment date, 60, 000 of Parks Co, bonds were converted into 1,200…

A: Share premium -The extra money investors pay for shares over and above their face value is referred…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Shamel Company has the following portfolio of securities at
April 30, 2020, its last reporting date.
Trading Securities
Cost/Book Fair Value
Value
Jahra Co. ordinary (2,000 shares)
Hawali Co. ordinary (2,500 shares)
Salmeya Corp. ordinary (3,000 shares)
1- On May. 20, 2020, the Jahra Co. shares were sold at a
price of $150 per share.
2- In addition, 5,000 shares of Salem Co. common stock
were acquired at $20 per share on Aug. 5, 2020.
3- The Dec. 31, 2020, fair values were Hawali $100,000,
Salmeya Co. $180,000 and SalemCo. common
$300,000.
$ 200,000 S 400,000
250,000
125,000
300,000 200,000
Instructions:
1- Evaluate the Portfolio at April 30, 2020 and
prepare the necessary entries.
2- Prepare the necessary entries at May 20, 2020.
3- Prepare the necessary entries at August 5, 2020.
4- Evaluate the Portfolio on December 31, 2020 and
prepare the necessary entries.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Ivanhoe Inc. has outstanding 11,500 shares of $10 par value common stock. On July 1, 2020, Ivanhoe reacquired 111 shares at $87 per share. On September 1, Ivanhoe reissued 60 shares at $95 per share. On November 1, Ivanhoe reissued 51 shares at $85 per share.Prepare Ivanhoe’s journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
On December 31, 2020, Dreamer Company reported as Available-for-sale securities: AT Company, 5,000 shares of common stock (a 1% interest) P 125,000 ITS Company, 10,000 shares of common stock (a 2% interest) 160,000 Two Company, 25,000 shares of common stock (a 10% interest) 700,000 Marketable equity securities, at cost P 985,000 Less: Valuation allowance 50,000 Marketable equity securities, at market P 935,000 Additional information: · On May, 2021, AT Company issued a 10% stock dividend when the market price of its stock was P24 per share. · On November 1, 2021, AT Company paid a cash dividend of P0.75 per share. · On August 5, 2021, ITS Company issued to all shareholders, stock rights on the basis of one right per share. Market prices at date of issue were P13.50 per share (ex-right) of stock and P1.50 per rights. Dreamer Company sold all rights on December 16, 2021 for net proceeds of P18,800. · On July 1, 2021, Dreamer Company paid P1,520,000 for 50,000 additional shares of Two…
Vaughn Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $34,400 and the market price of the stock is $21 per share.Record the conversion using the book value approach.
Larkspur Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $50,400, (2) 10,800 shares of Munter Ltd. common stock which cost $604,800, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $10,400 at the end of 2020. In 2021, Larkspur completed the following securities transactions. 1. On January 15, sold 2,800 shares of Anderson's common stock at $20 per share less fees of $2,160. 2. On April 17, purchased 900 shares of Castle's common stock at $33 per share plus fees of $2,030. On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $25. In addition, the accounting supervisor of Larkspur told you that, even though all these securities have readily determinable fair values, Larkspur will not actively trade these securities because…
Pecan Company has the following portfolio of investment securities at September 30, 2025, its last reporting date. Trading Securities Perry, Inc. common (12,000 shares) Platter, Inc. common (6,100 shares) Pokey Corp. preferred (1,000 shares) Cost $367,000 244,000 Date 94,000 Fair Value $351,000 248,000 On November 5, 2025, the Platter shares were sold at a price of $42 per share. In addition, 8,000 shares of Patriot common stock were acquired at $37 per share on November 26, 2025. The December 31, 2025, fair values were: Perry $348,000, Pokey $90,000, and the Patriot common $301,000. The Fair Value Adjustment account was at zero (0) as of September 30, 2025. 89,000 Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. (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…
On January 1, 2020, Sarasota Company issued 10-year, $1,810,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Sarasota common stock. Sarasota's net income in 2020 was $403,200, and its tax rate was 20%. The company had 96,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $960,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Sarasota common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $