Question
Hurricane Inc. purchased a portfolio of available-for-sale securities in 2016, its first year of operations. The cost and fair value of this portfolio on December
Hurricane Inc. purchased a portfolio of available-for-sale securities in 2016, its first year of operations. The cost and fair value of this portfolio on December 31, 2016, was as follows:
| 1 | Name | Number of Shares | Total Cost | Total Fair Value |
| 2 | Tornado Inc. | 830.00 | $14,442.00 | $16,766.00 |
| 3 | Tsunami Corp. | 1,300.00 | 31,460.00 | 36,790.00 |
| 4 | Typhoon Corp. | 2,160.00 | 44,496.00 | 43,200.00 |
| 5 | Total |
| $90,398.00 | $96,756.00 |
On June 12, 2017, Hurricane purchased 1,440 shares of Rogue Wave Inc. at $48 per share plus a $130 brokerage commission.
Required:
| A. | Provide the journal entries to record the following (refer to the Chart of Accounts for exact wording of account titles and be sure to enter the year as part of the date):
| ||||
| B. | How are unrealized gains and losses treated differently for available-for-sale securities than for trading securities? |
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The Economics Of Audit Quality Private Incentives And The Regulation Of Audit And Non Audit Services
Authors: Benito Arrunada
1999th Edition
0792384733, 978-0792384731
