141. Wiffery Company had the following trading securities in its portfolio at December 31. The Market Adjustment—Trading account had balance of zero prior to year-end adjustment. Prepare the appropriate adjusting journal entry.
Short-Term Investments
Cost
Market Value
IBM....................................................................
$ 24,500
$ 25,900
Microsoft............................................................
Intel.....................................................................
Dell......................................................................
51,000
62,300
29,900
48,600
61,000
30,200
Totals
$167,700
$165,700
142. Haladam Company had the following transactions relating to investments in trading securities during the year. Prepare the required general journal entries for these transactions.
May 4 Haladam purchased 600 shares of Cob Company stock at $120 per share plus a $750
brokerage fee.
July 1 Haladam received a $2.50 per share cash dividend on the Cob Company stock.
Sept. 15 Sold 300 shares of the Cob Company stock for $125 per share, less a $450
Dec. 31 The market value of the Cob Company stock (the only investment that Haladam
owns) is $124 per share. The balance of the Market Adjustment – Trading a zero
balance prior to adjustment.
143. Clarity Corporation had the following transactions involving investments in trading securities during the year. Prior to these transactions, Clarity never had any investments in trading securities. Prepare the required general journal entries to record these transactions.
Feb. 16
Purchased 800 shares of GN Corporation stock at $28 per plus a $400 brokerage fee.
Feb. 26
Purchased 500 shares of Honeyville Co. stock at $19 per share plus a $300 brokerage fee.
Mar. 2
Received a $0.95 per share dividend from the GN Corporation.
Mar. 28
Sold 200 shares of GN Corporation stock for $31 per share less a $150 brokerage fee.
Apr. 20
Sold 150 shares of Honeyville Co. stock at $17 per share less a $100 brokerage fee.
Apr. 30
The company is preparing quarterly financial statements, so it must prepare an adjusting entry for the market adjustment on the trading securities. At April 30, the GN stock has a market value of $30 per share, and the Honeyville stock has a market value of $16 per share.
144. Hector Corp. purchased 1,000 shares of Landmark Corp.'s common stock for $36,850 cash. This purchase is considered a long-term available-for-sale investment by Hector. Prepare Hector's journal entry to record the purchase.
145. On October 31, Mayfair Co. received cash dividends of $0.15 per share from its investment in Carter Corp.'s common stock. Mayfair owned 1,200 shares of Carter Corp.'s stock on October 31. The investment is considered available for sale. Prepare the investor's journal entry to record the receipt of the cash dividends.
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