Reference no: EM133074520
Question - Cullumber Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 3,100 shares of Anderson Co. common stock which cost $55,800, (2) 10,200 shares of Munter Ltd. common stock which cost $581,400, and (3) 5,600 shares of King Company preferred stock which cost $235,200. The Fair Value Adjustment account shows a credit of $10,900 at the end of 2020.
In 2021, Cullumber completed the following securities transactions.
1. On January 15, sold 3,100 shares of Anderson's common stock at $23 per share less fees of $2,270.
2. On April 17, purchased 1,000 shares of Castle's common stock at $33 per share plus fees of $1,870.
On December 31, 2021, the market prices per share of these securities were Munter $61, King $40, and Castle $21. In addition, the accounting supervisor of Cullumber told you that, even though all these securities have readily determinable fair values, Cullumber will not actively trade these securities because the top management intends to hold them for more than one year.
Required -
(a) Prepare the entry for the security sale on January 15, 2021.
(b) Prepare the journal entry to record the security purchase on April 17, 2021.
(c) Compute the unrealized gains or losses.
(d) Prepare the adjusting entry for Cullumber on December 31, 2021.
What will be the cost of first year of engineering college
: Currently, an engineering education costs 50,000 per year. Education costs are growing at 8% per annum. What will be the cost of 1st year of engineering college
|
Calculate and interpret ray debt ratio
: The following financial information is provided by Ray:
|
Marketing and public relations issues
: You are the new director of a child care center that has had some marketing and public relations issues in the past.
|
Discuss the potential investigation
: Discuss the potential investigation or studies for researchers for testing your predictions in the above question - Building on the three main components
|
Prepare the entry for the security sale on January
: On January 15, sold 3,100 shares of Anderson's common stock at $23 per share less fees of $2,270. Prepare the entry for the security sale on January 15, 2021
|
What would be the net investment required
: The tax rate is 30%, inventory shall increase by P10,000, payables by P5,000, what would be the net investment required to replace the existing machine
|
What rate of return would you need to have
: You are getting impatient and decide you want to travel to Australia in five years. What rate of return would you need to have to grow your $10,000
|
Assessed for preschool child
: What skill areas should be assessed for a preschool child who has Down syndrome? Why is it important to include parents in the assessment process?
|
How much money will you have in five years
: Based on the $10,000 you currently have in the bank, and your grandmother's $5,000 contribution, how much money will you have in five years
|