Question
I need help with journalizing the transactions from jan 20 to dec 1 The following securities are in Frederick Companys portfolio of long-term available-for-sale securities
I need help with journalizing the transactions from jan 20 to dec 1
The following securities are in Frederick Companys portfolio of long-term available-for-sale securities at December 31, 2017.
Cost 1,000 shares of Willhite Corporation common stock $50,000 1,300 shares of Hutcherson Corporation common stock 74,100 1,000 shares of Downing Corporation preferred stock 28,000
On December 31, 2017, the total cost of the portfolio equaled total fair value. Frederick had the following transactions related to the securities during 2018.
Jan. 20 Sold all 1,000 shares of Willhite Corporation common stock at $53 per share. 28 Purchased 420 shares of $69 par value common stock of Liggett Corporation at $77 per share. 30 Received a cash dividend of $1.30 per share on Hutcherson Corp. common stock. Feb. 8 Received cash dividends of $0.70 per share on Downing Corp. preferred stock. 18 Sold all 1,000 shares of Downing Corp. preferred stock at $27 per share. July 30 Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock. Sept. 6 Purchased an additional 950 shares of $15 par value common stock of Liggett Corporation at $81 per share. Dec. 1 Received a cash dividend of $1.40 per share on Liggett Corporation common stock.
At December 31, 2018, the fair values of the securities were:
Hutcherson Corporation common stock $61 per share Liggett Corporation common stock $71 per share
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