Heritage insurance co is a regional insurance company that

Reference no: EM13588247

Heritage Insurance Co. is a regional insurance company that began operations on January 1, 2012. The following transactions relate to trading securities acquired by Heritage Insurance Co., which has a fiscal year ending on December 31:
2012
Feb. 21. Purchased 4,000 shares of Astor Inc. as a trading security at $30 per share plus a brokerage commission of $600.
Mar. 9. Purchased 800 shares of Millsaps Inc. as a trading security at $41 per share plus a brokerage commission of $160.
May 3. Sold 600 shares of Astor Inc. for $27.50 per share less an $80 brokerage commission.
June 8. Received an annual dividend of $0.22 per share on Astor Inc. stock.
Dec. 31. The portfolio of trading securities was adjusted to fair values of $32 and $30 per share for Astor Inc. and Millsaps Inc., respectively.
2013
May 21. Purchased 2,000 shares of Essex Inc. as a trading security at $21 per share plus a $200 brokerage commission.
June 11. Received an annual dividend of $0.25 per share on Astor Inc. stock.
Aug. 16. Sold 400 shares of Essex Inc. for $25 per share less an $80 brokerage commission.
Dec. 31. The portfolio of trading securities had a cost of $169,230 and fair value of $170,560, requiring a debit balance in Valuation Allowance for Trading Investments of $1,330 ($170,560 _ $169,230). Thus, the credit balance from
December 31, 2012, is to be adjusted to the new balance.
Instructions
1. Journalize the entries to record these transactions.
2. Prepare the investment-related current asset balance sheet disclosures for Heritage
Insurance Co. on December 31, 2013.
3. How are unrealized gains or losses on trading investments disclosed on the financial statements of Heritage Insurance Co.?

Reference no: EM13588247

Questions Cloud

On january 1 a company issued 10 10-year bonds payable with : on january 1 a company issued 10 10-year bonds payable with a par value of 720000. the bonds pay interest on july 1 and

Lime corporation distributes the stock basis of 425000 fair : for the last eleven years lime corporation has owned and operated four different trades or businesses. lime also owns

Nick and jolene are married nick is 64 and retired last : nick and jolene are married. nick is 64 and retired last year from his job with amalgamated company.jolene is 56 and

On january 2 2013 the cerritos band acquires sound : on january 2 2013 the cerritos band acquires sound equipment for concert performances at a cost of 65800. the band

Heritage insurance co is a regional insurance company that : heritage insurance co. is a regional insurance company that began operations on january 1 2012. the following

Grant film productions wants to expand and has borrowed : grant film productions wants to expand and has borrowed 100000. as a condition for making this loan the bank requires

Minist corporation sells a single product for 20 per unit : minist corporation sells a single product for 20 per unit. last year the companys sales revenue was 260000 and its net

Samantha an executive has agi of 100000 before considering : samantha an executive has agi of 100000 before considering income or loss from her miniature horse business. her

On august 1 2003 cooper company purchased a four-year : on august 1 2003 cooper company purchased a four-year business insurance policy for 13200. calculate the amount of

User Account

All Pages