Sale and trading securities

Reference no: EM1344539

E17-6 (Entries for Available-for-Sale and Trading Securities) The following information is available for Barkley Company at December 31, 2007, regarding its investments.

Securities Cost Fair Value

3,000 shares of Myers Corporation Common Stock $40,000 $48,000

1,000 shares of Cole Incorporated Preferred Stock 25,000 22,000

$65,000 $70,000

Instructions

a) Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as trading.

b) Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as availablefor-
sale.

c) Discuss how the amounts reported in the financial statements are affected by the entries in (a) and (b).

Reference no: EM1344539

Questions Cloud

Explain how much additional short-term funding can it borrow : Explain how much additional short-term funding can it borrow before its current ratio standard is reached?

How much current does it draw : A 100 percent efficient electric motor is lifting a 15N weight at 25cm/s. If the motor is connected to a 7V battery, how much current does it draw.

Evaluate a company''s average tax rate : To evaluate a company's average tax rate an analyst would - Typical U.S. GAAP disclosures for deferred income taxes include all of the except

Elucidate under a fixed exchange rate system expansionary : Elucidate under a fixed exchange rate system expansionary monetary policy depletes foreign reserves at the federal reserve.

Sale and trading securities : Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as trading. Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as available for-sale.

Provide artificial gravity of g for the occupants : A railroad car of mass 4.0 * 10^4 kg moving at 5.0 m/s collides and couples with two coupled railroad cars, each of the same mass as the single car and moving in the same direction at 1.50 m/s.

Find appropriate quote and calculate the price : As the cash manager of your firm, you wish to buy $1,000,000 in thirty day Treasury bills. You obtain the following bid/ask quotes from three dealers:

Assume that you balance a 5kg ball on the tip : A brass plate measures 30 cm by 40 cm. The coefficient of linear thermal expansion is 19.0 10-6/°C. If the temperature of the plate is increased by 10.0 K, next what is the increase in the area of the plate? a) 0.350 cm2 b) 0.404 cm2 c) 0.456 cm2 ..

Explain what is etcs value : Explain what is the value of ETC according to MM with corporate taxes and What is ETC's value

User Account

All Pages