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
Requirements of Uniform Costing 1. Uniform costing systems must process the given features as: 2. Cost reports and statements should be organized and laid out in a same for


Both the parts, Profit and Loss Account and Trading Account of last account are interdependent upon each other. Gross Profit or loss plays a very important role in the calculation

behavioral aspect of standard costing

1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compa

Break-Even Chart This is a diagrammatic presentation of the relationship among costs, prices, expenses and the sales volume. A break-even chart expresses revenue and expens

how variable cost help in decision making.with suitable example

1.    The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital i

Decision Making Cycle Steps in decision-making cycle are as: a) Clearly define the objective that is to be the focus of the decision. This is significant in order that the

Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut