JAmesCorporation\'s balance sheet at December 31, 2009, showed the following: Sh

Question

JAmesCorporation's balance sheet at December 31, 2009, showed the following:
Short-term investments, at fair value $41,500

Trent Corporation's trading portfolio of stock investments consisted
of the following at December 31, 2009:
Stock                       Number of Shares                          Cost
Carey Common Stock             200                                   $28,000
Adler Preferred Stock              400                                    6,000
Hill Common Stock                300                                     9,000
                                                                                         $43,000

During 2010, the following transactions took place:
Feb. 5 Sold 50 shares of Carey common stock for $9,000.
Mar. 30 Purchased 100 shares of Hill common stock for $2800.
Sept. 9 Purchased 50 shares of Hill common stock for $2,200.

At year end on December 31, 2010, the market values per share were:
Market Value Per Share
Carey Common Stock $160.00
Adler Preferred Stock $15.00
Hill Common Stock $35.00

Instructions
(a) Prepare the journal entries to record the 2010 stock transactions.
(b) On December 31, 2010, prepare any adjusting entry that might be
necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Trent Corporation's
balance sheet at December 31, 2010.

Explanation / Answer

Entries Debit Credit Bank                           9,000.00 Common Stock          9,000.00 Investment in Hill Stock                         2,800.00 Bank          2,800.00 Investment in Hill Stock                         9,000.00 Bank          9,000.00 Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)

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