I NEED HELP ASAP PLEASE.THANK YOU. Flint Corporation made the following cash pur
ID: 2436935 • Letter: I
Question
I NEED HELP ASAP PLEASE.THANK YOU.
Flint Corporation made the following cash purchases of securities during 2017, which is the first year in which Flint invested in securities. 1. On January 15, purchased 10,120 shares of Sanchez Company's common stock at $46.90 per share plus commission $2,100 2. On April 1, purchased 5,120 shares of Vicario Co.s common stock at $72.80 per share plus commission $3,490 3. On September 10, purchased 7,120 shares of WTA Co.s preferred stock at $37.10 per share plus commission $5,030. On May 20, 2017, Flint sold 4,120 shares of Sanchez Company's common stock at a market price of $49 per share less brokerage commissions, taxes, and fees of $3,970. The year- end fair values per share were Sanchez $42, Vicario $77, and WTA $39.20. In addition, the chief accountant of Flint told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases. Compute the unrealized gains or losses. (Round answer to O decimal places, e.g. 2,500.) Unrealized Prepare the adjusting entries or Flint on December 31, 2017. Round answers to O deci places, e ·2,50 Credit accou t es are automatica y dented hen amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017Explanation / Answer
Calculation of net aquisition cost per share Shares Qty Purchase cost per share Commission per share Acquisition Cost per share Sanchez Company 10120 $46.90 $0.21 $47.11 Vicario Co. 5120 $72.80 $0.68 $73.48 WTA Co. 7120 $37.10 $0.71 $37.81 Computation of unrealised gains or losses as on Dec.31,2017 Shares Unsold Qty Market price as on Dec.31,2017 Acquisition Cost per share Unrealised gain or loss per share Total Unrealised gain or loss A B C D E=C-D B*E Sanchez Company 6000 $42.00 $47.11 -$5.11 -$30,645 Vicario Co. 5120 $77.00 $73.48 $3.52 $18,014 WTA Co. 7120 $39.20 $37.81 $1.39 $9,922 Unrealised Loss -$2,709 Unrealised Loss -$2,709 As the Fint Corporation treated shares purchased as Available for sale secuities, we will pass the following adjusting entry as on Dec.31,2017 to record unrealised gain / loss. Date Account Titles and Explanation Debit Credit Dec.31,2017 Available for sale securities $2,709.00 Unrealised Gain / loss - Other comprenesive income $2,709.00
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