Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on
Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows:
1 | Issuing Company | Cost | Fair Value |
---|---|---|---|
2 | Griffin Inc. | $29,200.00 | $32,120.00 |
3 | Luck Company | 30,000.00 | 26,400.00 |
4 | Wilson Company | 30,600.00 | 26,350.00 |
5 | Total | $89,800.00 | $84,870.00 |
On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $25,870.
Required:
Journalize the entries to record the following:
|
CHART OF ACCOUNTS Gruden Bancorp Inc. General Ledger
ASSETS | |
---|---|
110 | Cash |
111 | Petty Cash |
120 | Accounts Receivable |
121 | Allowance for Doubtful Accounts |
131 | Notes Receivable |
132 | Interest Receivable |
141 | Merchandise Inventory |
145 | Office Supplies |
146 | Store Supplies |
151 | Prepaid Insurance |
161 | Trading Investments-Carroll Inc. |
165 | Valuation Allowance for Trading Investments |
166 | Valuation Allowance for Available-for-Sale Investments |
181 | Land |
191 | Store Equipment |
192 | Accumulated Depreciation-Store Equipment |
193 | Office Equipment |
194 | Accumulated Depreciation-Office Equipment |
LIABILITIES | |
---|---|
210 | Accounts Payable |
221 | Notes Payable |
231 | Interest Payable |
241 | Salaries Payable |
251 | Sales Tax Payable |
EQUITY | |
---|---|
311 | Common Stock |
312 | Paid-In Capital in Excess of Par-Common Stock |
321 | Preferred Stock |
322 | Paid-In Capital in Excess of Par-Preferred Stock |
331 | Treasury Stock |
332 | Paid-In Capital from Sale of Treasury Stock |
340 | Retained Earnings |
350 | Unrealized Gain on Available-for-Sale Investments |
351 | Cash Dividends |
352 | Stock Dividends |
REVENUE | |
---|---|
410 | Sales |
411 | Interest Revenue |
412 | Dividend Revenue |
421 | Income of Carroll Inc. |
431 | Gain on Sale of Investments |
641 | Unrealized Gain on Trading Investments |
642 | Unrealized Loss on Trading Investments |
EXPENSES | |
---|---|
511 | Cost of Merchandise Sold |
512 | Bad Debt Expense |
515 | Credit Card Expense |
516 | Cash Short and Over |
520 | Salaries Expense |
531 | Advertising Expense |
532 | Delivery Expense |
533 | Repairs Expense |
534 | Selling Expenses |
535 | Rent Expense |
536 | Insurance Expense |
537 | Office Supplies Expense |
538 | Store Supplies Expense |
561 | Depreciation Expense-Store Equipment |
562 | Depreciation Expense-Office Equipment |
590 | Miscellaneous Expense |
710 | Interest Expense |
721 | Loss of Carroll Inc. |
731 | Loss on Sale of Investments |
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