Please see Image. Thank You! The following securities are in Pascual Company\'s
ID: 2376144 • Letter: P
Question
Please see Image. Thank You!
The following securities are in Pascual Company's portfolio of long-term available-for-sale securities at December 31, 2012 Cost 1,000 shares of Abel Corporation common stock $52,000 1,400 sh y Corporation common stock 84,000 1,200 shares of Weiss Corporation preferred stock 33,600 On December 31, 2012, the total cost of the portfolio equaled total fair value. Pascual had the following transactions related to the securities during 2013 Sold 000 sh Abel Corporation common stock at $55 per share less brokerage 20 $600 hased 400 sh $78 p 28 $70 p Corp share, plus brokerage fees of $480 h dividend stock. 30 $1.15 p Frey Corp. Feb. 8 Received cash dividends of $0.40 per share on Weiss Corp. preferred stock Sold of W d stock. brok Feb. 18 1,200 sh Corp. p $27 per sh fees of $360 y 30 h divid $1.00 p Frey Corp Sept. 6 Purchased an additional 900 shares o $10 p stock Corp $82 p brokerag of $1,200 Dec. 1 Received a cash dividend of $1.50 per share on Rosen Corporation common stock. 31, 2013, th At D Frey Corporation common stock $64 p Rosen Corporation common stock $72 p Pascual Company uses separate account titles for each investment, such as "Investment in Frey Corporation Common Stock Prepare journal entries to record the transactions. (For multiple debit/credit entries, list amounts from largest to smallest e 10, 5, 3, 2.) Date Account Description Debit credit Jan. 20 Jan. 28 v Jan. 30 v Feb. 18 July 30. Sept. 6 Post to the investment accounts. (Use Taccounts.) (If answer i y fields b k.) ter 0. Do Investment in Abel Corp. Investment in Frey Corp. Common Stock Common Stock 12/31 Bal Investment in Weiss Corp. Investment in Rosen Corp. Preferred Stock 12/31 Bal Prepare the adjusting entry at December 31, 2013 to report the portfolio at fair value Debit Credit count/Description a negative sign preceding the number e Show the balance sheet presentation at December 31, 2013. (If g.-45 (45).) Balance Sheet Stockholders' equity Total paid-in capital and retained earnings Total stockholders' equityExplanation / Answer
(a) Jan. 20 Cash ($55,000 %u2013 $600) Dr 54400
Investment in Abel Corp. Cr 52000
Gain on Sale of stock Investment Cr 2400
Jan 28 Investment in Rosen Corp Common Stock Dr 31680
Cash [(400 * $78) + $480] Cr 31680
Jan 30 Cash Dr 1,610
Dividend Revenue Cr 1610
($1.15 *1,400)
Frb 8 Cash Dr 480
Dividend Revenue ($.40*1,200) Cr 480
Feb 18 Cash [($27 *1,200) %u2013 $360] Dr 32,040
Loss on Sale of Preferred Stock Dr 1,560
Investment in Weiss Corp. Pref Stock Cr 33600
Jul30 Cash Dr 1,400
Dividend Revenue ($1.00 *1,400) Cr 1400
Sep6 Investment in Rosen Corp Common Stock Dr 75000
Cash [($82 *900) + $1,200] Cr 75000
Dec1 Cash Dr 1950
Dividend Revenue($1.50*1,300) Cr 1950
(b) Investment in Abel Corp.
Common Stock
1/1 Bal 52,000 1/20 52,000
12/31 Bal 0
Investment in Frey Corporation
Common Stock
1/1 Bal 84,000
12/31 Bal 84,000
Investment in Weiss Corp.
Preferred Stock
1/1 Bal 33,600 2/18 33,600
12/31 Bal 0
Investment in Rosen Corporation
Common Stock
1/28 31,680
9/6 75,000
12/31 Bal. 106,680
(c) Dec. 31 Unrealized Gain or Loss%u2014Equity Dr 7480
Market Adj%u2014Available-for-Sale Cr 7480
($190,680 %u2013 $183,200)
Security Cost Fair Value
Frey Corporation common $84,000 $ 89,600 (1400*64)
Rosen Corporation common 106,680 93,600 (1300*72)
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$190,680 $183,200
(d) Investments :
Investment in stock of less than 20% owned
companies, at fair value 183200
Stockholders%u2019 equity :
Total paid-in capital and retained earnings xxxxx
Less: Unrealized loss on available-for-sale
securities. (7480)
------------------------------------------------------
Total stockholders%u2019 equity yyyyyy
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