On February 15, Jewel Company buys 9.200 shares of Marcelo Corp. common stock at
ID: 2393998 • Letter: O
Question
On February 15, Jewel Company buys 9.200 shares of Marcelo Corp. common stock at $2963 per share plus a brokerage fee of $510. The stock is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.70 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $30.40 per share less a brokerage fee of $360. The journal entry to record the sale of the 4,600 shares of stock on November 17 is: 2 0213 24 Multiple Choice Debit Cash $139.480 credit Long-Term Investments-AFS $136.298, credit Gain on Sale of Long-Term Investments $3,182 Debit Cash $139.840, credt Long-Term investments-Trading $136.298 debit Gein on Sale of Long-Term Investments $3.542 Debt Cesh $139.840; credit Long-Term Investments-AFS $136553: credit Goin on Sele of Long-Term Investments $3,287Explanation / Answer
Answer 18) Debit Cash $1,39,480; credit Long-Term Investments-AFS $1,36,553; credit Gain on Sale of Long-Term Investments $2,927.
Calculation:- cash received= [(4600 × $30.4) - $360]
= $1,39,480
Credit to long term investment = [(9200 × $29.63) + $510]/2 = $1,36,553
Gain = $1,39,480 - $1,36,553 = $2,927.
Answer 19) Debit fair value adjustment- available for sale(LT) $16000; credit Unrealized loss- equity $7,000; credit Unrealized gain- equity $9,000
Calculation:-
Credit Unrealized loss - equity = $318000 - 325000 = $7000
Credit Unrealized gain - equity = $409000 - 400000 = $9000
Answer 20) 19.66%
Calculation:-
Return on assets = profit margin × asset turnover ratio
=11.3% × 1.74
= 19.66%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.