User Account

All Pages

Prepare journal entries to record the sale

Assignment Help Accounting Basics
Reference no: EM131768936

Problem - "McElroy Company has the follow portfolio of investment securities at 9/30/10 (its last reporting date):

Trading Securities Cost FV

Horton, common (5,000 shares) 215,000 200,000

Monty, common (3,500 shares) 133,000 140,000

Oakwood, common (1,000 shares) 180,000 179,000

On October 10, 2010 the Horton shares were sold at a price of $54 per share. Also 3,000 shares of Patriot common stock were acquired at 54.50 per share on 11/2/10. All securities are classified as trading. The Dec 31, 2010 fair values were:

Monty $ 106,000

Patriot $ 132,000

Oakwood $ 193,000

a) Prepare journal entries to record the sale, purchase and adjusting entries related to the trading securities in the last quarter of 2010.

b) How would the entries in part (a) change if the securities were classified as available for sale?"

Reference no: EM131768936

Questions Cloud

Common stock valuation : Redford, Inc.'s outstanding common stock is currently selling in the market for $33. Dividends of $2.30 per share were paid last year
Calculate the value of a bond that matures : Calculate the value of a bond that matures in 10 years and has a $1,000 par value. The annual coupon interest rate is 9 percent and the market
What is the link between marginal revenue product and wages : What is the link between marginal revenue product and wages? Does this notion of marginal revenue product and wages conflict with minimum wage laws?
Analyze and pull together the empirical research : layout a road map map or analysis in one page use five sources to build the case of topic .
Prepare journal entries to record the sale : Prepare journal entries to record the sale, purchase and adjusting entries related to the trading securities in the last quarter of 2010
Prepare t-accounts for inventories : Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these t-accounts.
Expected return-beta relationship from the capm : 1) What is the economic/intuitive justification for the expected return-beta relationship from the CAPM
Differences between the conceptual and formal design : Differences on architectural ideas and their different interpretations in design principles and design elements - design elements used to manifest the design
What are the long-term benefits and consequences : What was the PATRIOT Act's role in establishing the use of fusion centers across the country? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd