Journalize the entries to record these transactions

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Reference no: EM13949123

Stock Investment Transactions, Trading Securities

Ophir Investments Inc. is a regional investment company that began operations on January 1, 2014. The following transactions relate to trading securities acquired by Ophir Investments Inc., which has a fiscal year ending on December 31:

2014

Feb. 3.

Purchased 2,400 shares of Mapco Inc. as a trading security at $27 per share plus a brokerage commission of $480.

Mar. 23.

Purchased 1,200 shares of Swift Inc. as a trading security at $11 per share plus a brokerage commission of $240.

May 19.

Sold 600 shares of Mapco Inc. for $28 per share less an $80 brokerage commission.

June 12.

Received an annual dividend of $0.15 per share on Mapco stock.

Dec. 31.

The portfolio of trading securities was adjusted to fair values of $31 and $12 per share for Mapco Inc. and Swift Inc., respectively.

2015

 

Apr. 9.

Purchased 1,100 shares of Corvair Inc. as a trading security at $32 per share plus a $165 brokerage commission.

June 15.

Received an annual dividend of $0.18 per share on Mapco Inc. stock.

Aug. 30.

Sold 200 shares of Corvair Inc. for $26 per share less a $60 brokerage commission.

Dec. 31.

The portfolio of trading securities had a cost of $91,335 and fair value of $87,600, requiring a credit balance in Valuation Allowance for Trading Investments of $3,735 ($91,335 - $87,600). Thus, the debit balance from December 31, 2014 is to be adjusted to the new balance.

Required:

1. Journalize the entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.

2. Prepare the investment-related current asset balance sheet presentation for Ophir Investments Inc. on December 31, 2015

Reference no: EM13949123

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