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
Consider the following two mutually exclusive projects:   Whichever project you choose, if any, you require a 15 percent return on your investment.   a. If you apply the payb

The profit volume ratio of xltd. is 50% and the margin of safety is 40%.you are required to calculate the net profit if sales volume is rs.100,000?

Manson Manufacturing applies manufacturing overhead at a rate of $30 per direct labour hour a)when during the year was this rate computed b)Describe briefly how this rate was

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $550,000; M

a factory operates a small canteen but its annual operation has consistently shown a loss:

Goal Congruence - Behavioural Aspects of Standards A perfect variance analysis and standard costing system must enhance goal congruence between as: i. The goal of individua

sir i want to know the whole procress of costing

A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d

Idea behind Activity-Based Costing The most important ideas behind activity-based costing are as given as: Activities cause costs; activities involve ordering, ma

Mandy Building Contractors Ltd signed a fixed-price contract to build a bridge for Nelly Ltd for $110 million on 1 July 2012.  Contract costs are estimated as follows: