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

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

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 4C: Victoria Company has investments in marketable securities classified as trading and...

See similar textbooks

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

Similar questions

Fair Value Journal Entries, Trading Investments 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: Name Number of Shares Total Cost Total Fair Value Griffin Inc. 1,400 $18,760 $17,630 Luck Company 750 24,600 22,880 Wilson Company 350 10,500 10,710 Total $53,860 $51,220 On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $30 per share plus a $90 brokerage commission. Provide the journal entries to record the following: a. The adjustment of the trading security portfolio to fair value on December 31, Year 1. Year 1, Dec. 31 fill in the blank fc5d10fdb048f9d_2 fill in the blank fc5d10fdb048f9d_4 b. The May 10, Year 2, purchase of Carroll Inc. stock. Year 2, May 10 fill in the blank 1c85c7f3ff9905c_2
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.
Journal entries for trading investments Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows: Issuing Company Cost Fair Value Griffin Inc. $40,000 $44,800 Luck Company 37,500 33,750 Wilson Company 40,000 37,000 Total $117,500 $115,550 On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $34,900. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The adjusting entry for the portfolio of trading securities on December 31, 20Y3. 20Y3, Dec. 31 fill in the blank 0de958062fa6ff5_2 fill in the blank 0de958062fa6ff5_3 fill in the blank 0de958062fa6ff5_5 fill in the blank 0de958062fa6ff5_6 b. The May 10, 20Y4, purchase of Carroll Inc. securities. 20Y4, May 10 fill in the blank…
ủo 2 AAA Company has the following securities in its trading portfolio on December 31 of year 1. All securities are purchased during year 1: Description Cost Fair Value Dolt Corporation common stock: 15,000 shares $ 259,500 $ 345,000 Single JA common stock: 200,000 shares 1,800,000 1,000,000 Portfolio Totals $ 2,059,500 $1,345,000 AAA acquired and sold securities from this portfolio during year 2. Specifically, on June 3, the company sold 7,500 shares of Dolt Corporation stock for $16 per share. On November 9, AAA acquired 4,000 shares of FOAH Stores 'common stock for $86 per share. The AAA Company portfolio of trading equity securities on December 31 of year 2 is presented below. Description Cost Fair Value Dolt Corporation common stock: 7,500 shares $ 129,750 $ 172,500 Single JA common stock: 200,000 shares 1,800,000 1,000,000 FOAH common stock: 4,000 shares 344,000 324,000 Portfolio Totals $ 2,273,750 $1,496,500 Instruction: 1. Prepare the journat entry to record the acquisition of…
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?
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
Journal entries for trading investments Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows: Issuing Company Cost Fair Value Griffin Inc. $14,070 $13,230 Luck Company 22,960 21,350 Wilson Company 9,300 9,490 Total $46,330 $44,070 On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $15,610. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The adjusting entry for the portfolio of trading securities on December 31, 20Y3. 20Y3, Dec. 31 b. The May 10, 20Y4, purchase of Carroll Inc. securities. 20Y4, May 10 c. The adjusting entry for the portfolio of trading securities on December 31, 20Y4. Assume that except for the purchase of Carroll Inc. securities there were no other transactions involving trading securities in 20Y4. In addition, assume that the fair value of…
Question 6: Myrnam Co. has the following investments held for trading on December 31, 2021: Carrying Value 185,000 125,000 230,000 540,000 Fair Value Category FVTPL Security Co. M common shares Co. N preferred shares Co. P common shares 160,000 140,000 190,000 490,000 FVTPL FVTOCI Total Instructions: a. Prepare the adjusting entries required at December 31 to report the above investments at fair value. b. Show the financial statement presentation of the investments and holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.) c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for $160,000, Co. N preferred shares for $135,000, and Co P common shares for $200,000, prepare the journal entries required to record these transactions. Round amounts to the nearest dollar. Show ALL calculations
Instructions Chart of Accounts Journal Instructions 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 2 Griffin Inc. 3 Luck Company 4 Wilson Company Total 5 Name Number of Shares 1,460.00 1,200.00 850.00 Total Cost $29,200.00 30,000.00 30,600.00 $89,800.00 Total Fair Value $32,120.00 26,400.00 26,350.00 $84,870.00 On May 10, Year 2, Gruden Bancorp Inc. purchased 990 shares of Carroll Inc. at $26 per share plus a $130 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.
Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. O O $-7440. O $-20400. O $0. O $-130740. December 31, 2021 Cost O $23000 loss. O $14000 loss. - $0. O $9000 gain. $150000 Cash $296000 146000 Cash Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation? Debt Investments Premium on Bonds Cash Current Attempt in Progress Sunland Company purchased $2700000 of 9%, 5-year bonds from Cheyenne, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2830740 at an effective interest rate of 8%. Using the effective-interest method, Sunland Company decreased the Available-for-Sale Debt Securities account for the Cheyenne, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10020 and $10380, respectively. Debt Investments Eair Value $127000…
AUDIT OF MARKETABLE SECURITIES – TRADING The company’s equity portfolio as of year-end showed the following: Total Market Value Shares Cost per Share SCC 7,000 108,500 P16.00 PHA 10,000 195,000 19.75 PAL 2,400 49,200 24.00 EMP 2,000 67,000 26.00 DMC 8,000 31,600 1.20 UB 1,600 50,880 27.50 P502,180 The securities are listed in the stock exchange. The company follows the fair value accounting. Trading securities A. P403,640 B. P502,180 C. P491,240 D. P472,700
2. The cost and fair value of trading securities held by Moneyman as of December 31 are as follows: Laurie Inc. Scott Corp. Stephannie Company Timmer Company Total Name Required: Number of Shares 1,200 600 900 1,400 Fair Value Cost Total per per Total Fair Share Share Cost Value $10.50 $11.05 9.00 9.85 4.10 4.00 7.35 6.82 a. Complete the table above to find the total cost and fair value for Moneyman's trading securities portfolio. b. Calculate and record the required December 31 adjustment c. Explain how the adjustment from part (b) is reported on Moneyman's financial statements

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

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.