Grass Security, which began operations in 2017, invests in long-term available-f
ID: 2543359 • Letter: G
Question
Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity.
2017
2018
2019
Purchased 2,500 shares of Johnson & Johnson at $22.00 per share plus a $390 commission.
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Purchased 2,700 shares of Sony at $47.70 per share plus a $375 commission.
Note: Enter debits before credits.
Purchased 3,000 shares of Mattel at $28.50 per share plus a $345 commission.
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Per share fair values for stocks in the portfolio are Johnson & Johnson, $23.00; Mattel, $32.40; and Sony, $39.50. Record the adjustment to fair value as of December 31, 2017.
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For 2018
Sold 2,500 shares of Johnson & Johnson at $25.00 per share less a $675 commission.
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Sold 3,000 shares of Mattel at $25.40 per share less a $385 commission.
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Purchased 2,100 shares of Sara Lee at $24.00 per share plus a $630 commission.
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Purchased 2,400 shares of Eastman Kodak at $18.50 per share plus a $348 commission.
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Per share fair values for stocks in the portfolio are: Kodak, $20.75; Sara Lee, $21.50; and Sony, $36.50. Record the adjustment to fair value as of December 31, 2018.
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For 2019
Purchased 3,900 shares of Microsoft at $68.50 per share plus a $675 commission.
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Sold 2,700 shares of Sony at $49.50 per share less a(n) $1,030 commission.
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Purchased 2,900 shares of Black & Decker at $37.50 per share plus a $585 commission.
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Sold 2,100 shares of Sara Lee at $17.75 per share less a $585 commission.
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Sold 2,400 shares of Eastman Kodak at $24.25 per share less a(n) $775 commission.
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Per share fair values for stocks in the portfolio are: Black & Decker, $40.50; and Microsoft, $70.50. Record the adjustment to fair value as of December 31, 2019, if any.
Note: Enter debits before credits.
Jan. 20 Purchased 2,500 shares of Johnson & Johnson at $22.00 per share plus a $390 commission. Feb. 9 Purchased 2,700 shares of Sony at $47.70 per share plus a $375 commission. June 12 Purchased 3,000 shares of Mattel at $28.50 per share plus a $345 commission. Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $23.00; Mattel, $32.40; and Sony, $39.50.Explanation / Answer
Date General Journal Debit Credit 20-Jan-17 Available for sale securities-Jhonson & Johnson $ 55,390 (2500*22+390) Cash $ 55,390 Date General Journal Debit Credit 9-Feb-17 Available for sale securities-Sony $ 129,165 (2700*47.70+375) Cash $ 129,165 Date General Journal Debit Credit 12-Jun-17 Available for sale securities-Mattel $ 84,345 (3000*28.5+345) Cash $ 84,345 Date General Journal Debit Credit 31-Dec-17 Available for sale securities-Jhonson & Johnson $ 2,110 (2500*23)-55390 57500 Unrealized gain/loss-other comprehensive income $ 2,110 Available for sale securities-Mattel $ 13,155 (3000*32.50-84345) 97500 Unrealized gain/loss-other comprehensive income $ 13,155 Unrealized gain/loss-other comprehensive income $ 22,515 (129165-(2700*39.5) 106650 Available for sale securities-Sony $ 22,515 Date General Journal Debit Credit 15-Apr-18 Unrealized gain/loss-other comprehensive income $ 2,110 Available for sale securities-Jhonson & Johnson $ 57,500 (55390+2110) Cash $ 61,825 (2500*25-675) Realized gain on sale of available securities $ 6,435 Date General Journal Debit Credit 5-Jul-18 Unrealized gain/loss-other comprehensive income $ 13,155 Available for sale securities-Mattel $ 97,500 (84345+13155) Cash $ 75,815 (3000*25.4-385) Realized loss on sale of available securities $ 8,530 Date General Journal Debit Credit 22-Jul-18 Available for sale securities-Sara lee $ 51,030 (2100*24+630) Cash $ 51,030 Date General Journal Debit Credit 19-Aug-18 Available for sale securities-Eastman Kodak $ 44,748 (2400*18.5+348) Cash $ 44,748 Date General Journal Debit Credit 31-Dec-18 Available for sale securities-Kodak $ 5,052 (2400*20.75-44748) Unrealized gain/loss-other comprehensive income $ 5,052 Unrealized gain/loss-other comprehensive income $ 5,880 51030-(2100*21.50) Available for sale securities-Sara lee $ 5,880 Unrealized gain/loss-other comprehensive income $ 8,100 (2700*(39.5-36.5) Available for sale securities-Sony $ 8,100 98550 Date General Journal Debit Credit 27-Feb-19 Available for sale securities-Microsoft $ 267,825 (3900*68.5+675) Cash $ 267,825 Date General Journal Debit Credit June21,2019 Unrealized gain/loss-other comprehensive income $ 30,615 (22515+8100) Available for sale securities-Sony $ 98,550 (129165-22515-8100 Cash $ 132,620 (2700*49.5)-1030 Realized gain on sale of available securities $ 3,455 Date General Journal Debit Credit 30-Jun-19 Available for sale securities-Black & Decker $ 109,335 (2900*37.5+585) Cash $ 109,335 Date General Journal Debit Credit 3-Aug-19 Unrealized gain/loss-other comprehensive income $5,880 Available for sale securities-Sara Lee 45150 (51030-5880 Cash $ 36,690 (2100*17.75-585) Realized Loss on sale of available securities $14,340 Date General Journal Debit Credit 1-Nov-19 Unrealized gain/loss-other comprehensive income $5,052 Available for sale securities-Kodak $ 49,800 (44748+5052) Cash $ 57,425 (2400*24.25-775) Realized Gain on sale of available securities $12,677 Date General Journal Debit Credit 31-Dec-19 Available for sale securities-Black & Decker $ 8,115 (2900*40.5-109335) Unrealized gain/loss-other comprehensive income $ 8,115 Available for sale securities-Microsoft $ 7,125 (3900*70.5-267825) Unrealized gain/loss-other comprehensive income $ 7,125
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