Swanson Company has the following securities in its trading portfolio of securit
ID: 2352051 • Letter: S
Question
Swanson Company has the following securities in its trading portfolio of securities on December 31, 2012.Investments (Trading) Cost Fair Value
1,500 shares of Parker, Inc., Common $89,250 $86,560
5,000 shares of Beilman Corp., Common 184,700 180,520
400 shares of Duncan, Inc., Preferred 64,780 66,620
$338,730 $333,700
All of the securities were purchased in 2012.
In 2013, Swanson completed the following securities transactions.
March 1 Sold the 1,500 shares of Parker, Inc., Common, @ $46 less fees of $1,220.
April 1 Bought 700 shares of McDowell Corp., Common, @ $76 plus fees of $1,322.
Swanson Company
Explanation / Answer
(a) Unrealized Holding Gain or Loss—Income Dr 5,030 Securities Fair Value Adjustment (Trading) Cr 5,030 (Adjustment on Cost $338,730 & Fair value $333,700) (b) Cash [(1,500 *$46) – $1,220] Dr $67,780 Loss on Sale of Securities Dr $21,470 Trading Securities Cr 89,250 (c) Trading Securities [(700 *$76) + $1,322] Dr $54,522 Cash Cr $54,522 Securities Cost FairValue Unrealized Holding Gain(Loss) Beilman Corp., Common $184,700 $180,520 $ (4,180) McDowell Corp., Common 54,522 50,732 (3,790) Duncan, Inc., Preferred 64,780 61,820 (2,960) Total portfolio $304,002 $293,072 (10,930) Previous securities fair value adjustment—Cr. (5,030) ------------------------------------------------------------------------------- Securities fair value adjustment—Cr. $ (5,900) Unrealized Holding Gain or Loss—Income Dr 5900 Securities Fair Value Adjustment (Trading) Cr 5900
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