Reference no: EM132683709
Problem - Fair value journal entries, trading investments
First Guarantee Financial, Inc., purchased the following trading securities during 2012, its first year of operations:
|
Name
|
Number of Shares
|
Cost
|
|
B&T Transportation, Inc.
|
3,400
|
$ 74,200
|
|
Citrus Food, Inc.
|
1,500
|
26,500
|
|
Stuart Housewares, Inc.
|
800
|
45,200
|
|
Total
|
|
$145,900
|
The market price per share for the trading security portfolio on December 31, 2012, was as follows:
Market Price per Share Dec. 31, 2012
B&T Transportation, Inc. $26
Citrus Foods, Inc. 19
Stuart Housewares, Inc. 52
Required -
a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, 2012.
b. Assume the market prices of the portfolio were the same on December 31, 2013, as they were on December 31, 2012. What would be the journal entry to adjust the portfolio to fair value?
|
Identify how you will measure the accomplishment
: It is important to have a clear view of where a company wants to be in the future. Healthy Dynamics wants to increase company revenue, decrease risk.
|
|
Proportion of the fund allocated to two-year bonds
: It uses this portfolio to make these five payments of $1,000. Find the proportion of the fund allocated to two-year bonds.
|
|
What are proportional rates used for
: What are proportional rates used for? And the internal rate of return?
|
|
Discuss the importance of strategic planning
: The healthcare industry continues to face many challenges such as rising costs, consumer prices, prescription costs, lost revenue, mergers, and acquisitions.
|
|
What would be the journal entry to adjust the portfolio
: Assume the market prices of the portfolio were the same on December 31, 2013, as they were on December 31, 2012. What would be the journal entry
|
|
Debt-to-equity ratio of national grid
: The debt-to-equity ratio of National Grid (which owns the high-voltage electricity transmission network in the UK and in New England) was around 1.9 in 2014.
|
|
Is operating cash flow an accounting profit
: Is operating cash flow an accounting profit?
|
|
Diversity group represented in the workplace
: What are two benefits of having your selected diversity group represented in the workplace?
|
|
Problem - Fair value journal entries and trading investments
: Problem - Fair value journal entries, trading investments - On April 3, 2013, Acorn Bancorp Inc. purchased 500 shares of Luke, Inc., at $36 per share
|