Question
Here is Maple Companys portfolio of long-term available-for-sale securities at December 31, 2011: COST 1,700 shares of Wickham Inc. common stock $85,000 1,300 shares of
Here is Maple Companys portfolio of long-term available-for-sale securities at December 31, 2011:
COST
1,700 shares of Wickham Inc. common stock $85,000
1,300 shares of Kerry Corporation common stock 89,700
1,000 shares of H. Kelso Corporation preferred stock 42,000
On December 31, the total cost of the portfolio equaled the total fair value. Maple had the following transactions related to the securities during 2012.
Jan. | 20 | Sold 1,700 shares of Wickham Inc. common stock at $53 per share less brokerage fees of $1,100. | ||
28 | Purchased 410 shares of $10 par value common stock of M. McLain Corporation at $78 per share plus brokerage fees of $480. | |||
30 | Received a cash dividend of $1.45 per share on Kerry Corporation common stock. | |||
Feb. | 8 | Received cash dividends of $0.42 per share on H. Kelso Corporation preferred stock. | ||
18 | Sold all 1,000 shares of H. Kelso preferred stock at $35 per share less brokerage fees of $340. | |||
July | 30 | Received a cash dividend of $2.00 per share on Kerry Corporation common stock. | ||
Sept. | 6 | Purchased an additional 610 shares of the $10 par value common stock of M. McLain Corporation at $82 per share plus brokerage fees of $630. | ||
Dec. | 1 | Received a cash dividend of $1.60 per share on M. McLain Corporation common stock |
At December 31, 2012, the fair values of the securities were:
Maple uses separate account titles for each investment, such as Investment in Kerry Corporation Common Stock. |
Prepare journal entries to record the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 20 28 30 Feb. 8 18 uly 30 Sept. 6 Dec. 1 SHOW LIST OF ACCOUNTS
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