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Using the information below, how do I record Chaz\'s investment transactions for

ID: 2432640 • Letter: U

Question

Using the information below, how do I record Chaz's investment transactions for January 6 through June 30, 2019?

Chaz Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Chaz's portfolio of trading investments consisted of the following equity securities:

Security

Number of Shares

Cost per Share

Fair Value per Share

Benford Company

600

$66

$66

Gold Inc.

960

43

44

Demi Company

480

70

72

During the first half of 2019, Chaz engaged in the following investment transactions:

Jan. 6

Sold one-half of the Gold shares for $45 per share.

Feb. 3

Purchased 700 shares of Jackson Corporation common stock for $45 per share.

Mar. 31

Dividends of $2,500 were received on the investments, and the following information is available on market prices.

Security

Fair Value per Share

Benford Company

$65

Gold Inc.

45

Demi Company

70

Jackson Corporation

43

Apr. 14

Purchased 360 shares of Jordan Company preferred stock for $52 per share.

May 11

Sold the remainder of the Gold shares for $42 per share.

June 30

Dividends of $2,800 were received on investments, and the following information is available:

Security

Fair Value per Share

Benford Company

$68

Demi Company

69

Jackson Corporation

46

Jordan Company

50

Security

Number of Shares

Cost per Share

Fair Value per Share

Benford Company

600

$66

$66

Gold Inc.

960

43

44

Demi Company

480

70

72

Explanation / Answer

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Date Particulars Debit Credit 6-Jan Cash $ 21,600.00 Investment in AFS $ 20,640.00 Gain in sale of AFS $        960.00 6-Jan Unrealized Holding Gain in Securities $        480.00 Allowance for change in fair value investment $        480.00 3-Feb Investment in AFS $ 31,500.00 Cash $ 31,500.00 31-Mar Cash $    2,500.00 Dividend Income $    2,500.00 14-Apr Investment in AFS $ 18,720.00 Cash $ 18,720.00 11-May Cash $ 20,160.00 Investment in AFS $ 20,640.00 Loss in sale of AFS $        480.00 11-May Unrealized Holding Loss in Securities $        400.00 Allowance for change in fair value investment $        400.00 30-Jun Cash $    2,500.00 Dividend Income $    2,500.00