Prepare necessary entries assuming nop stock is classified

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Reference no: EM131093421

Accounting for Trading Securities

Fox Company made the following transactions in the common stock of NOP Company:

July 10, 2006

Purchased 10,000 shares at $45 per share.

Sept. 29, 2007

Sold 2,000 shares for $51 per share.

Aug. 17, 2008

Sold 2,500 shares for $33 per share.

The end-of-year market prices for the shares were as follows:

December 31, 2006

$47 per share

December 31, 2007

39 per share

December 31, 2008

31 per share

Instructions: Prepare the necessary entries for 2006, 2007, and 2008, assuming the NOP stock is classified as a trading security.

Reference no: EM131093421

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