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Unformatted text preview: ACT 6692 Module 16 – Assignment (Problems) 16-1—Trading equity securities Gordon Company has the following securities in its portfolio of trading equity securities on December 31, 2007: Cost Fair Value 5,000 shares of Milner Corp., Common $155,000 $139,000 10,000 shares of Eddy, Common 182,000 190,000 $337,000 $329,000 All of the securities had been purchased in 2007. In 2008, Gordon completed the following securities transactions: March 1 Sold 5,000 shares of Milner Corp., Common @ $31 less fees of $1,500. April 1 Bought 600 shares of Yount Stores, Common @ $45 plus fees of $550. The Gordon Company portfolio of trading equity securities appeared as follows on December 31, 2008: Cost Fair Value 10,000 shares of Eddy, Common $182,000 $195,500 600 shares of Yount Stores, Common 27,550 25,500 $209,550 $221,000 Instructions Prepare the general journal entries for Gordon Company for: (a) the 2007 adjusting entry. (b) the sale of the Milner Corp. stock. (c) the purchase of the Yount Stores' stock. (d) the 2008 adjusting entry. 16-2—Trading equity securities Lopez Company began operations in 2006. Since then, it has reported the following gains and losses for its investments in trading securities on the income statement: 2006 2007 2008 Gains (losses) from sale of trading securities $ 15,000 $(20,000) $ 14,000 Unrealized holding losses on valuation of trading securities (25,000) — (30,000) Unrealized holding gain on valuation of trading securities — 10,000 — At January 1, 2009, Lopez owned the following trading securities: Cost AGH Common (15,000 shares) $450,000 DEL Preferred (2,000 shares) 210,000 Pratt Convertible bonds (100 bonds)...
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This note was uploaded on 02/22/2011 for the course MBA 6692 taught by Professor Lewis during the Spring '11 term at Troy.
- Spring '11