Answer To: Do the "Trading Securities" entries on the given tab...it's one big project due in few weeks but...
Akshay Kumar answered on Apr 05 2021
Trial Balance
JKL, Inc.
Trial balances
Final Adj. Unadjusted Adjusted
12/31/2019 12/31/2020 Ref DR Ref CR 12/31/2020
Cash 580,000 724,000
Investment in trading securities 64,000 64,000 1 19,000.00 83,000.00
Accounts receivable 138,000 35,000
Allowance for doubtful accounts (2,000) (2,000)
Interest receivable - 0 - 0
Inventory 60,000 40,000
Current portion of notes receivable - 0 - 0
Prepaid expenses 4,000 3,000
Allowance for change in fair value of securities - 0 - 0
Term portion of note receivable - 0 - 0
Investment in DFE Corp. - 0 - 0
Machine A 72,000 72,000
Machine B 68,000 68,000
Building 676,000 676,000
Other depreciable assets 992,000 992,000
Machine D 92,000 92,000
Outdoor rigging 288,000 288,000
Electronic Equipment E (related to outdoor rigging venture) 92,000 92,000
Accumulated depreciation (1,300,000) (1,300,000)
Patent - 0 - 0
Goodwill -- DFE Corp. 128,000 128,000
Accounts payable (1,020,000) (320,000)
Taxes payable (36,000) (36,000)
Accrued expenses (4,000) (32,000)
Preferred dividends payable - 0 - 0
Pension liability - 0 - 0
Bonds payable, 6%, due 2034 (360,000) (360,000)
suspense - 0 1,084,000
Preferred non-cumulative, 6%, $500 par, 3616 shares outstanding (1,808,000) (1,808,000)
Common stock, $10 par, 9,000 shares outstanding (360,000) (360,000)
Paid in capital in excess of par, common (272,000) (272,000)
Accumulated other comprehensive income - 0 - 0
- 0 - 0
Treasury stock - 0 - 0
Retained earnings 1,908,000 1,908,000
Sales - 0 (5,428,000)
Cost of goods sold - 0 3,170,000
Selling, general and administrative expense - 0 482,000
Interest income - 0 - 0
Interest expense - 0 - 0
Depreciation expense - 0 - 0
Federal income tax expense - 0 - 0
Tax expense or benefit re: discontnued sale - 0 - 0
Tax expense or benefit re: discontnued operation - 0 - 0
Results from discontinued operations--disposition - 0 - 0
Results from discontinued operations--operation - 0 - 0
Extraordinary gains or losses - 0 - 0
- 0 - 0
Balances at 12/31/18 are needed for the cash flow worksheet.
Balances at 12/31/19 are the ending balances for 2019 before your adjustments.
Get your trial balance worksheet 2018 beginning balances from the 2018 column above.
You can add accounts as needed.
Journal Entries
Put a copy of all your journal entries for 2020 here on this tab.
You are not making ANY prior year entries. Any prior year information is just that--information.
No. Events Journal Entry Account Debit Credit
1 Trading securities Investment in trading securities 19,000.00
Unrealized gains (losses) on trading securities 19,000.00
To mark trading securities to market (83,000-64,000)
Given
JKL, Inc. presents the preliminary trial balance at 12/31/20 and the related information set out below. Entries for the related information have not been recorded, but routine transactions for operation of the company during the year have been recorded. Accordingly, you have an unadjusted trial balance at 12/31/20 . The trial balance for 12/31/19, also called the prior year trial balance, is a post-closing trial balance. The following...