PROBLEM SET A Carlville Company, which began operations in 2017, invests its idl
ID: 2508563 • Letter: P
Question
PROBLEM SET A Carlville Company, which began operations in 2017, invests its idle cash in trading securitics lowing transactions are from its short-term investments in trading securities Problem 15-1A ecording transactions and 2017 ar value adjuntments for Jan. 20 Parchased 800 shares of Ford Motor Co. at $26 per share plus a $125 commission reding secures Feb. 9 Purchased 2,200 shares of Lucent at $44.25 per share plus a $578 commission Okt. 12 Purchased 750 shares of Z-Seven at $7.50 per share plus a $200 commission Dec. 31 Pair value of the short-term investments in trading securities is $130,000 2018 Ape. IS Sold 800 shares of Ford Motor Co at $29 per share less a $285 commission July 5 Sold 750 shares of Z-Seven at $10.25 per share less a $102.50 commission f be 1600 shares of Hunt Corp. at $.30 per share plus a $444 commission Ang 19 Purchased 1,800 shares of Donna Karan at $18.25 per share plus a $290 commission Dec. 31 Pair value of the short-term investments in trading securities is $160,000 3Explanation / Answer
Carlsville company
General journal entries
For the year ended 2017
Date
Particular
Debit
Credit
Jan 20
Short term investment
20,925
Cash (800x26+125)
20,925
Feb 09
Short term investment
97,928
Cash (2200x44.25+578)
97,928
Oct 12
Short term investment
5,825
Cash (750x7.50+200)
5,825
Dec 31
Fair value adjustment
5,322
Unrealised gain
5,322
For the year ended 2018
Apr 15
Cash (800x29-285)
22,915
Short term investment
20,925
Gain on short term investment
1,990
Jul 05
Cash (750x10.25-102.50)
7,585
Short term investment
5,825
Gain on short term investment
1,760
Jul 22
Short term investment
48,444
Cash (1600x30+444)
48,444
Aug 19
Short term investment
33,140
Cash (1800x18.25+290)
33,140
Dec 31
Unrealised loss
24,834
Fair value adjustment
24,834
For the year ended 2019
Feb 27
Short term investment
1,16,020
Cash (3400x34+420)
1,16,020
Mar 03
Cash (1600x25-250)
39,750
Loss on short term investment
8,694
Short term investment
48,444
Jun 21
Cash (2200x42-420)
91,980
Loss on short term investment
5,848
Short term investment
97,928
Jun 30
Short term investment
57,595
Cash (1200x47.50+595)
57,595
Nov 01
Cash (1800x18.25-309)
32,541
Loss on short term investment
599
Short term investment
33,140
Dec 31
Unrealised loss
18,449
Fair value adjustment
18,449
Carlsville company
General journal entries
For the year ended 2017
Date
Particular
Debit
Credit
Jan 20
Short term investment
20,925
Cash (800x26+125)
20,925
Feb 09
Short term investment
97,928
Cash (2200x44.25+578)
97,928
Oct 12
Short term investment
5,825
Cash (750x7.50+200)
5,825
Dec 31
Fair value adjustment
5,322
Unrealised gain
5,322
For the year ended 2018
Apr 15
Cash (800x29-285)
22,915
Short term investment
20,925
Gain on short term investment
1,990
Jul 05
Cash (750x10.25-102.50)
7,585
Short term investment
5,825
Gain on short term investment
1,760
Jul 22
Short term investment
48,444
Cash (1600x30+444)
48,444
Aug 19
Short term investment
33,140
Cash (1800x18.25+290)
33,140
Dec 31
Unrealised loss
24,834
Fair value adjustment
24,834
For the year ended 2019
Feb 27
Short term investment
1,16,020
Cash (3400x34+420)
1,16,020
Mar 03
Cash (1600x25-250)
39,750
Loss on short term investment
8,694
Short term investment
48,444
Jun 21
Cash (2200x42-420)
91,980
Loss on short term investment
5,848
Short term investment
97,928
Jun 30
Short term investment
57,595
Cash (1200x47.50+595)
57,595
Nov 01
Cash (1800x18.25-309)
32,541
Loss on short term investment
599
Short term investment
33,140
Dec 31
Unrealised loss
18,449
Fair value adjustment
18,449
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