Using the information below, how do I record Chaz\'s investment transactions for
ID: 2432640 • Letter: U
Question
Using the information below, how do I record Chaz's investment transactions for January 6 through June 30, 2019?
Chaz Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Chaz's portfolio of trading investments consisted of the following equity securities:
Security
Number of Shares
Cost per Share
Fair Value per Share
Benford Company
600
$66
$66
Gold Inc.
960
43
44
Demi Company
480
70
72
During the first half of 2019, Chaz engaged in the following investment transactions:
Jan. 6
Sold one-half of the Gold shares for $45 per share.
Feb. 3
Purchased 700 shares of Jackson Corporation common stock for $45 per share.
Mar. 31
Dividends of $2,500 were received on the investments, and the following information is available on market prices.
Security
Fair Value per Share
Benford Company
$65
Gold Inc.
45
Demi Company
70
Jackson Corporation
43
Apr. 14
Purchased 360 shares of Jordan Company preferred stock for $52 per share.
May 11
Sold the remainder of the Gold shares for $42 per share.
June 30
Dividends of $2,800 were received on investments, and the following information is available:
Security
Fair Value per Share
Benford Company
$68
Demi Company
69
Jackson Corporation
46
Jordan Company
50
Security
Number of Shares
Cost per Share
Fair Value per Share
Benford Company
600
$66
$66
Gold Inc.
960
43
44
Demi Company
480
70
72
Explanation / Answer
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Date Particulars Debit Credit 6-Jan Cash $ 21,600.00 Investment in AFS $ 20,640.00 Gain in sale of AFS $ 960.00 6-Jan Unrealized Holding Gain in Securities $ 480.00 Allowance for change in fair value investment $ 480.00 3-Feb Investment in AFS $ 31,500.00 Cash $ 31,500.00 31-Mar Cash $ 2,500.00 Dividend Income $ 2,500.00 14-Apr Investment in AFS $ 18,720.00 Cash $ 18,720.00 11-May Cash $ 20,160.00 Investment in AFS $ 20,640.00 Loss in sale of AFS $ 480.00 11-May Unrealized Holding Loss in Securities $ 400.00 Allowance for change in fair value investment $ 400.00 30-Jun Cash $ 2,500.00 Dividend Income $ 2,500.00Related Questions
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