No. Date Account Titles and Explanation Debit Credit (1) (2) (3) SHOW LIST OF AC
ID: 2404596 • Letter: N
Question
No.
Date
Account Titles and Explanation
Debit
Credit
(1)
(2)
(3)
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
Swifty Corporation made the following cash purchases of securities during 2017, which is the first year in which Swifty invested in securities.1. On January 15, purchased 10,050 shares of Sanchez Company’s common stock at $40.20 per share plus commission $2,030. 2. On April 1, purchased 5,050 shares of Vicario Co.’s common stock at $62.40 per share plus commission $3,420. 3. On September 10, purchased 7,050 shares of WTA Co.’s preferred stock at $31.80 per share plus commission $4,960.
On May 20, 2017, Swifty sold 4,050 shares of Sanchez Company’s common stock at a market price of $42 per share less brokerage commissions, taxes, and fees of $3,900. The year-end fair values per share were Sanchez $36, Vicario $66, and WTA $33.60. In addition, the chief accountant of Swifty told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases.
Explanation / Answer
Part 1
Part 2
Gross selling price of 4,050 shares at $42............$170,100
Less: Commissions, taxes, and fees...........................(3900)
Net proceeds from sale...............................................166,200
Cost of 3,000 shares ($406040 * 4050/10050).....(163,628)
Gain on sale of investments...................................$ 2572
Part 3
242142
(406040-163628)
216000
(10050-4050)*36
330000
(5000*66)
236880
(7050*33.60)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.