Grass Security, which began operations in 2017, invests in long-term available-f
ID: 2331460 • Letter: G
Question
Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity Problem 15-3A Recording, adjustin reporting long-tern available-for-sale s 2017 an. 20 Purchased 1,000 shares of Johnson& Johnson at $20.50 per share plus a $240 commission. P3 Feb. 9 Purchased 1,200 shares of Sony at $46.20 per share plus a $225 commission June 12 Purchased 1,500 shares of Mattel at $27.00 per share plus a $195 commission. Dee. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, S21.50: Mattel, S30.90 and Sony, $38. 2018 Apr. 15 Sold 1,000 shares of Johnson &Johnson at $23.50 per share less a S525 commission. July 5 Sold 1,500 shares of Mattel at $23.90 per share less a $235 commission. July 22 Purchased 600 shares of Sara Lee at $22.50 per share plus a $480 commission. Aug. 19 Purchased 900 shares of Eastman Kodak at $17 per share plus a $198 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $19.25; Sara Lee, $20.00 $35.00Explanation / Answer
1.Record jornal entries for the transaction and events as follows for year 2017:
General jornal
Fair value reseve -JJ
[1000*($21.50-$20.50)]
Fair values reserve -M
[1500*($30.90-$27.00)]
Record jornal entries for thw transformations and events as follows for year 2018:
General journal
Record journal entries for the transactions and events as follows for year 2019:
General journal
2.Calculate total caost total fair vlaue and value of profilio for year end2017
For year 2017
Calculate total cost total fair value and fair value of protfolio for year end 2018
For year 2018
Calculate total cost total fair value and fair value of protfolio for year end 2019:
For year 2019
3.Calculate realized gains and losses and the unreal;ized gains and losses for the proftfolio year 2017:
unrealized gain/loss as on Dec31,2017
calcuolate realized gains and losses and the unrealized gains and losses for the portflio year 2018:
unrealized gain/loss as on Dec 31,2018
Realized gain/loss 2018
Calculate realized gains and losses and the unrealized gains and losses for the proftflio year 2019
Unrealixed gain/loss as on Dec 31,2019
Realized gain/loss 2018
Date Accounts title and explanation Post Ref Debit($) Credit($) 20-jan-17 Investement-JJ $20,500 Shares comision expense $240 Bank $20,740 (To record shares purchesed in JJ) 9-Feb-17 Investements-S $55,440 Shares comission expense $225 Bank $55,665 (To record shares purchesed in S) 12-Jun-17 Investment -M $40,500 Shares comission expense $195 Bank $40,695 (To record shares purchesed in M) 31-Dec-17 Investements $6,850Fair value reseve -JJ
[1000*($21.50-$20.50)]
$1,000Fair values reserve -M
[1500*($30.90-$27.00)]
$5850 (To record unrealized gain) 31-Dec-17 Fair value reverse-S[1200*($46.20-$38)] $9840 Investments $9840 (To record unrelized loss)Related Questions
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