Here is Maple Company’s portfolio of long-term available-for-sale securities at

Question

Here is Maple Company’s portfolio of long-term available-for-sale securities at December 31, 2011:

COST

1,700 shares of Wickham Inc. common stock $85,000

1,300 shares of Kerry Corporation common stock 89,700

1,000 shares of H. Kelso Corporation preferred stock 42,000

On December 31, the total cost of the portfolio equaled the total fair value. Maple had the following transactions related to the securities during 2012.

At December 31, 2012, the fair values of the securities were:

Maple uses separate account titles for each investment, such as Investment in Kerry Corporation Common Stock.

Jan. 20 Sold 1,700 shares of Wickham Inc. common stock at $53 per share less brokerage fees of $1,100. 28 Purchased 410 shares of $10 par value common stock of M. McLain Corporation at $78 per share plus brokerage fees of $480. 30 Received a cash dividend of $1.45 per share on Kerry Corporation common stock. Feb. 8 Received cash dividends of $0.42 per share on H. Kelso Corporation preferred stock. 18 Sold all 1,000 shares of H. Kelso preferred stock at $35 per share less brokerage fees of $340. July 30 Received a cash dividend of $2.00 per share on Kerry Corporation common stock. Sept. 6 Purchased an additional 610 shares of the $10 par value common stock of M. McLain Corporation at $82 per share plus brokerage fees of $630. Dec. 1 Received a cash dividend of $1.60 per share on M. McLain Corporation common stock Prepare journal entries to record the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 20 28 30 Feb. 8 18 uly 30 Sept. 6 Dec. 1 SHOW LIST OF ACCOUNTS

Explanation / Answer

Journal

Date Account Name Debit Credit Jan 20 Cash 89000 Brokerage 1100         Available for sale securities 85000         Profit on Sale 5100 Jan 28 Available for sale securities 31980 Brokerage 480         Cash 32460 Jan 30 Cash 1885          Dividend (1300x1.45) 1885 Feb 8 Cash 420          Dividend (1000x0.42) 420 Feb 18 Cash 34660 Brokerage 340 Loss on Sale 7000           Available for sale securities 42000           July 30 Cash 2600          Dividend(1300x2) 2600 Sept. 6 Available for sale securities 50020 Brokerage 630          Cash 50650 Dec 1 Cash 1632          Dividend(410+610) x 1.6 1632 Dec 31 Unrealized loss on available for sale securities(69-64)x1300 6500           Available for sale securities 6500 Dec 31 Unrealized loss on available for sale securities(82000-78540) 3460           Available for sale securities 3460

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