(Equality Securities Entries) Grander Skys Corporation made following cash purch
ID: 2473455 • Letter: #
Question
(Equality Securities Entries) Grander Skys Corporation made following cash purchase of securities during 2014, which is the first year in which Grander Skys invested in Sections On March 31, Purchased 25,000 shares of Carrot Crops preferred stock at 421.60 per share plus commision #3,650 On May 10, purchased 1,000 shares of Pepper Co's common stock at $6.50 per share plus commison $890. On August 25 purchased 17,000 shares of Onions Inc's prefered stock at $13.75 per share plus commission $1,860 On August 25, 2014, Grander Skys sold 10,000 shares of Carrot Coro p's preffereed stock at a market price of $26.25 per share less brokerage commissions, taxes, and fees of $1,550. The year-end fair values per share were: Carrot $30.00, Pepper $6.10, and Onion S 14.50. In addition the cheif accountant of Grander Skys told you that Grander Skys Corporation plans to hold these Securities for the term but may sell them in order to earn prfits from in prices Prepare the journal entries to record the above three security purchase Prepare the journal entry for the security sale on August 25. Compare the unrelaized gains or losses and prepare the adjusting entries for Grander Skys on December 31, 2014Explanation / Answer
31-Mar investment in preffered shares of carrot corporation debit 543650 credit cash 543650 10-May investment in common shares of pepper co. debit 7790 credit cash 7790 25-Aug investment in preffered shares of onion codebit 235610 credit cash 235610 25-Aug cash debit 260950 credit investment in preferred stock of carrot corporation 217460 credit profit on sale of shares of carrot corp. 43490 no of shares per unit market price current market value purchase cost Realized gain or loss 15000 30 450000 326190 123810 1000 6.1 6100 7790 -1690 17000 14.5 246500 235610 10890 31-Dec investment of shares of carrot corp debit 450000 investment of shares of pepper co debit 6100 investment in shares of onion co debit 246500 credit unrealised gain 133010 credit investment in shares of carrot corp 326190 credit investment in shares of pepper co 7790 credit investment in shares of onion corp 235610
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.