Prepare journal entries to record these short-term

Assignment Help Accounting Basics

Reference no: EM13583496

Ryder Company, which began operations in 2011, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities.

2011
Jan. 20 Purchased 800 shares of Ford Motor Co. at $27 per share plus a $120 commission.
Feb. 9 Purchased 2,700 shares of Lucent at $30 per share plus a $190 commission.
Oct. 12 Purchased 720 shares of Z-Seven at $7.60 per share plus a $95 commission.

2012
Apr. 15 Sold 800 shares of Ford Motor Co. at $30 per share less a $295 commission.
July 5 Sold 720 shares of Z-Seven at $11.00 per share less a $95 commission.
July 22 Purchased 1,800 shares of Hunt Corp. at $32 per share plus a $225 commission.
Aug. 19 Purchased 1,600 shares of Donna Karan at $14 per share plus a $105 commission.

2013
Feb. 27 Purchased 3,800 shares of HCA at $37 per share plus a $440 commission.
Mar. 3 Sold 1,800 shares of Hunt at $27 per share less a $125 commission.
June 21 Sold 2,700 shares of Lucent at $27.75 per share less a $32 commission.
June 30 Purchased 1,400 shares of Black & Decker at $47.50 per share plus a $595 commission.
Nov. 1 Sold 1,600 shares of Donna Karan at $23.20 per share less a $124 commission.

1. Prepare journal entries to record these short-term investment activities for the years shown. (Ignore any year-end adjusting entries.)
2. On December 31, 2013, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities when HCA's share price is $39 and Black & Decker's share price is $43.5. (Assume the Fair Value Adjustment-Trading account had an unadjusted balance of zero.)

Reference no: EM13583496

Questions Cloud

Hank estimates that 3 of the grape concentrate is wasted 10 : hnak itzek manufactures and sells homemade wine and he wants to develop a standard cost per gallon. the following are

Mr x saved 800000 during the 25 years that he worked for a : mr x saved 800000 during the 25 years that he worked for a major corporation. now he has retired at the age of 50 and

Tobey receives 1000 shares of you dog stock as part of his : tobey receives 1000 shares of you dog stock as part of his compensation package. tobeys employment contract with you

Turner co owned a warehouse and then decided to build a new : turner co. owned a warehouse and then decided to build a new automated racking system in the warehouse. they began

Prepare journal entries to record these short-term : ryder company which began operations in 2011 invests its idle cash in trading securities. the following transactions

Bigbyte company has 20 obsolete computers that are carried : bigbyte company has 20 obsolete computers that are carried in inventory at a cost of 15000. if these computers are

In addition the company has fixed selling and : peak manufacturing produces snow blowers. the selling price per snow blower is 100. costs involved in production are as

What are the ending inventory values for each joint product : assume quality chicken uses the production method of accounting for byproducts. what are the ending inventory values

Having recently been to a company seminar on the new tax : steven is a representative for a textbook publishing company. steven attends a convention that will also be attended by

User Account

All Pages