4. (15 points) Counting Services Inc. has the following portfolio of trading equ
ID: 2512737 • Letter: 4
Question
4. (15 points) Counting Services Inc. has the following portfolio of trading equity securities at 12/31/17. All securities were purchased during 2017. Symbol # shares Total Cost Market Value AAPL BMX GNC Total $102,000 $47,000 1000 115,000 63,000 64,000 72,000 3000 $213,000 Prepare the adjustment necessary at 12/31/17. On February 12, 2018, Counting Services sells 1,000 shares of AAPL for $115,000. Prepare the journal entry. The total cost of the two remaining securities is $111,000 and the market value is $130,000 at March 31, 2018. Prepare the adjusting entry. a. b. c.Explanation / Answer
A
Adjustment entry on 12/31/2017
Unrealised Gain
Debit
Credit
Investment in securities
$37,000
To unrealised gain on securities
($250,000-$213,000)
$37,000
B
On Feb 12, 2018
Cash a/c
$115,000
To Investment in securities
$115,000
C
On March 31, 2018 - Unrealised Loss
unrealised Loss on securities
(63,000+72,000-130,000)
$5,000
To investment in securities
$5,000
A
Adjustment entry on 12/31/2017
Unrealised Gain
Debit
Credit
Investment in securities
$37,000
To unrealised gain on securities
($250,000-$213,000)
$37,000
B
On Feb 12, 2018
Cash a/c
$115,000
To Investment in securities
$115,000
C
On March 31, 2018 - Unrealised Loss
unrealised Loss on securities
(63,000+72,000-130,000)
$5,000
To investment in securities
$5,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.