Answered: Splish Brothers Inc. has the following…

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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Question

Splish Brothers Inc. has the following securities in its portfolio of equity securities on December 31, 2021:

	Cost	Fair Value
5,000 shares of Thomas Corp., Common	$150,000	$138,500
10,000 shares of Gant, Common	182,000	189,700
	$332,000	$328,200

All of the securities had been purchased in 2021. In 2022, Splish Brothers Inc. completed the following securities transactions:

March 1		Sold 5,000 shares of Thomas Corp., Common @ $31 less fees of $1,500.
April 1		Bought 580 shares of Werth Stores, Common @ $44 plus fees of $520.

The Splish Brothers Inc. portfolio of equity securities appeared as follows on December 31, 2022:

	Cost	Fair Value
10,000 shares of Gant, Common	$182,000	$193,000
580 shares of Werth Stores, Common	26,040	23,870
	$208,040	$216,870

(a)

Prepare the general journal entry for Splish Brothers Inc. for the 2021 adjusting entry. (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.)

Date	Account Titles and Explanation	Debit	Credit
12-31-21

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