Class19 - more problems

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

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

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 LossEquity account is used instead of Unrealized Holding Gain or LossIncome. The unrealized holding loss would be deducted from the stockholders equity section rather than charged to the income statement....
View Full Document

Page1 / 4

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

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online