Identify the income statement and balance sheet, Cost Accounting

In January 2012, the management of Stefan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred.

Feb. 1 Purchased 600 shares of Superior common stock for $31,800, plus brokerage fees of $600.

Mar. 1 Purchased 800 shares of Pawlik common stock for $20,000, plus brokerage fees of $400.

Apr. 1 Purchased 50 $1,000, 7% Venice bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1.

July 1 Received a cash dividend of $0.60 per share on the Superior common stock.

Aug. 1 Sold 200 shares of Superior common stock at $58 per share less brokerage fees of $200.

Sept. 1 Received a $1 per share cash dividend on the Pawlik common stock.

Oct. 1 Received the semiannual interest on the Venice bonds.

Oct. 1 Sold the Venice bonds for $50,000 less $1,000 brokerage fees.

At December 31, the fair value of the Superior common stock was $55 per share. The fair value of the Pawlik common stock was $24 per share.

Instructions

(a) Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.)(a) Gain on stock sale $600 use T-account form

(b) Prepare the adjusting entry at December 31, 2012, to report the investment securities at fair value. All securities are considered to be trading securities.

(c) Show the balance sheet presentation of investment securities at December 31, 2012.

(d) Identify the income statement accounts and give the statement classification of each account.

Posted Date: 3/18/2013 3:24:44 AM | Location : United States







Related Discussions:- Identify the income statement and balance sheet, Assignment Help, Ask Question on Identify the income statement and balance sheet, Get Answer, Expert's Help, Identify the income statement and balance sheet Discussions

Write discussion on Identify the income statement and balance sheet
Your posts are moderated
Related Questions
In this exercise you will familiarize yourself with index models, beta and CAPM estimation. Download the spreadsheet data_question3.xlsx from Sakai and use the data contained there

distinguish between bin card and store ledgre

labour cost related case study with solution

Farmer Dorr figures that her fixed costs are $2,000, and the relevant portion of her total cost curve is:                                           Thousands of

Principles of Marginal Costing The principles of marginal costing are as given: 1. Period fixed costs are similar, for any volume of sales and production provided suc


The value of un-sold stock. The stock is valued at cost or market price either is lower. Usually, the closing stock is not specified in the trial balance but is specified in adjust

Each unit of a product requires four components. The average number of components is 4.25 due to component failure. Purchasing higher quality components can reduce the average numb

AOL is considering two proposals to overhaul its network infrastructure. They have received two bids. The first bid, from Huawei, will require a $20 million upfront investment and

Under a contract with the provincial government, ChemLabs Inc. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Co