Question
Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities.
Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities. 2017
Jan. | 20 | Purchased 1,000 shares of Ford Motor Co. at $28 per share plus a $125 commission. | ||
Feb. | 9 | Purchased 2,600 shares of Lucent at $34 per share plus a $190 commission. | ||
Oct. | 12 | Purchased 760 shares of Z-Seven at $7.60 per share plus a $100 commission. | ||
Dec. | 31 | Fair value of the short-term investments in trading securities is $125,900. |
2018
Apr. | 15 | Sold 1,000 shares of Ford Motor Co. at $30 per share less a $295 commission. | ||
July | 5 | Sold 760 shares of Z-Seven at $11.00 per share less a $95 commission. | ||
July | 22 | Purchased 1,800 shares of Hunt Corp. at $38 per share plus a $220 commission. | ||
Aug. | 19 | Purchased 1,800 shares of Donna Karan at $47.50 per share plus a $110 commission. | ||
Dec. | 31 | Fair value of the short-term investments in trading securities is $239,690. |
2019
Feb. | 27 | Purchased 3,700 shares of HCA at $40 per share plus a $420 commission. | ||
Mar. | 3 | Sold 1,800 shares of Hunt at $33 per share less a $125 commission. | ||
June | 21 | Sold 2,600 shares of Lucent at $31.75 per share less a $32 commission. | ||
June | 30 | Purchased 1,200 shares of Black & Decker at $47.50 per share plus a $595 commission. | ||
Nov. | 1 | Sold 1,800 shares of Donna Karan at $47.50 per share less a $129 commission. | ||
Dec. | 31 | Fair value of the short-term investments in trading securities is $210,200. |
Required: Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)
Regis Company's: Tax January 8 earnings subject to tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA 1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.) Journal entry worksheet Record the employee payroll expenses and liabilities for the first weekly pay period of the year. Note: Enter debits before credits. General Journal Debit Credit Date Jan 08 Record entry Clear entry View general journal 2. Prepare the journal entry to record Regis's (employer) payroll taxes resulting from the January 8 payroll. Regis's merit rating reduces its state unemployment tax rate to 6% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) 2. Prepare the journal entry to record Regis's (employer) payroll taxes resulting from the January 8 payroll. Regis's merit rating reduces its state unemployment tax rate to 6% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the employer's payroll expenses and liabilities for the first weekly pay period of the year. Note: Enter debits before credits. General Journal Debit Credit Date Jan 08 Record entry Clear entry View general journal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started