Investments-stocks-shares and dividends

Assignment Help Accounting Basics

Reference no: EM13115933

Big Brother Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2002.

Earl Company 1,000 shares @ $15 each $15,000

Josie Company 900 shares @ $20 each 18,000

David Company 500 shares @ $9 each 4,500

Available-for sale securities @ cost 37,500

Securities fair value adjustment?Available-for-sale (7,500)

Available-for-sale securities @ fair value $30,000

During 2002, the following transactions took place.

1. On March 1, Josie Company paid a $2 per share dividend.

2. On April 30, Big Brother Holdings, Inc. sold 300 shares of David Company for $10 per share.

3. On May 15, Big Brother Holdings, Inc. purchased 50 more shares of Earl Co. stock at $16 per share.

4. At December 31, 2002, the stocks had the following price per share values: Earl $17, Josie $19, and David $8.

During 2003, the following transactions took place.

5. On February 1, Big Brother Holdings, Inc. sold the remaining David shares for $7 per share.

6. On March 1, Josie Company paid a $2 per share dividend.

7. On December 21, Earl Company declared a cash dividend of $3 per share to be paid in the next
month.

8. At December 31, 2003, the stocks had the following price per shares values: Earl $19 and Josie $21.

Instructions

(a) Prepare journal entries for each of the above transactions.

(b) Prepare a partial balance sheet showing the Investments account at December 31, 2002 and 2003.

Reference no: EM13115933

Questions Cloud

Calculate probability randomly selected student is woman : In a group of college students there are 200 women, 10 of whom smoke. There are 150 men, 32 of whom smoke. Calculate the probability a randomly selected student is a woman or a smoker.

Explain how would you share advantage or disadvantage : What type of information would you tell the prospective employer?. Explain how would you share be to your advantage or disadvantage?

Define maquiladoras for final assembly : The components will then be taken to maquiladoras for final assembly. GMI purchased an existing company in Brazil to produce component A and built a subsidiary in Thailand to produce component B.

Which element found in protein makes them unique : In comparison to the composition of carbohydrates and fats, which element found in protein makes them unique?

Investments-stocks-shares and dividends : Big Brother Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2002. Prepare journal entries for each of the above transactions.

What is the final temperature of the water : A 275-g sample of nickel at 100.0C is placed in 100.0 mL of water at 22.0C. What is the final temperature of the water.

Find experimental approach tools of molecular biology : Please provide a reasonably detailed explanation and weblinks/book names of your resources at the bottom of your answer. However, please be concise to the question -- no dissertation-sized answer please! Thank you!

Explain who is superior between two finalists : The test has a reliability of .87 and a standard deviation of 5. Joe scored a 57 on the test and Jill scored a 62. Is Jill clearly superior to Joe? Explain your answer.

Explain how much does the spring stretch : The spring is aligned with the plane and has a spring constant of 133 N/m. Explain how much does the spring stretch?

User Account

All Pages