Evaluate the cost and market value

Assignment Help Financial Accounting

Reference no: EM133559

Question 28:

1. Could you give us with a list all trading securities, providing the cost and market value of each at December 31, 20X3 and 31^st December, 20X4?

Our investments in trading securities at 31^st December, 20X4 are as given:

Number of Shares Cost Market Value

General Electric 200 $15,000 $16,400

General Motors 1,225 7,000 9,720

Our investments in trading securities at 31^st December, 20X3 were as given:

Number of Shares Cost Market Value

General Electric 200 $15,000 $17,240

General Mills 300 18,000 19,400

General Motors 1,225 7,000 10,100

General Mills, which cost $18,000, was sold for $20,100, net of commissions.

2. Since you still own General Motors and General Electric, could these be reclassified to long-term securities?

Well, our intent in holding these securities is still to sell them as soon as probable for a profit, so we think they qualify as trading securities. The market is just not cooperating with us at the moment.

Reference no: EM133559

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