Class19 - more problems

Class19 - more problems - 45,000 November 2 2007(Los Tigres...

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Click to edit Master subtitle style P17-6 Loxley Company has the following portfolio of securities at September 30, 2007, its last reporting date. On Oct. 10, 2007, the Fogelberg shares were sold at a price of $54 per share. In addition, 3,000 shares of Los Tigres common stock were acquired at $59.50 per share on Nov. 2, 2007. The Dec. 31, 2007, fair values were: Petra $96,000, Los Tigres $132,000, and the Weisberg common $193,000. Equity Securities – P17-6 Obj10
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Click to edit Master subtitle style P17-6 Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading securities in the last quarter of 2007. October 10, 2007 (Fogelberg) : Cash (5,000 x $54) 270,000 Trading securities 225,000 Gain on sale
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Unformatted text preview: 45,000 November 2, 2007 (Los Tigres) : Trading securities (3,000 x $59.50) 178,500 Cash 178,500 Click to edit Master subtitle style • P17-6 Portfolio at December 31, 2007 December 31, 2007: Unrealized holding loss - income 51,500 Securities fair value adj. - Trading 51,500 Obj101 Click to edit Master subtitle style P17-6 How would the entries change if the securities were classified as available-for-sale? The entries would be the same except that • the Unrealized Holding Gain or Loss—Equity account is used instead of Unrealized Holding Gain or Loss—Income. • The unrealized holding loss would be deducted from the stockholders’ equity section rather than charged to the income statement....
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Class19 - more problems - 45,000 November 2 2007(Los Tigres...

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