Question
Please provide the journal entries for the following. 1:Angel Company purchases a portfolio of passive equity investments on January 1, 2021 for $291,650. On April
Please provide the journal entries for the following.
1:Angel Company purchases a portfolio of passive equity investments on January 1, 2021 for $291,650. On April 15, 2021 Angel s sold stocks from its portfolio. Those stocks had a cost basis of $78,125 and were sold for $82,400. On June 20, 2021, the firm purchased additional passive equity securities for $79,760. The firm received cash dividends on October 30, 2021 of $20,845. the fair value of the portfolio was $303,800 on December 30, 2021.
provide the missing Journal information in the table below.
Answer:
Account Name Entry Amount DR/CR/NA
1/1/21 Equity Investments $
4/15/21 Gain/Loss on Sale $
10/31/21 Dividend Revenue $
12/31/21 Fair Value Adjustment $
2. Angel Company purchases 900 shares of Microsoft stock for $47.65 per share on June 20, 2020. The market price for the shares is $52.30 on December 31, 2020 and $48.35 on December 31, 2021.Provide the fair value adjusting entry information using the table below for December 31, 2020 and December 31, 2021.
Answer:
Account Name Entry Amount DR/CR/NA
12/31/20 fair value adjustment $
Unrealized holding G/L $
12/31/21 Fair Value Adjustment $
Unrealized holding G/L $
3. Angel Company owns debt investments that are classified as trading. The investments were originally acquired for $155,000 on January 1, 2019 and have a par value of $150,000. on December 31, 2019, the investments had an amortized cost of $154,500 and a fair value of $156,100. on December 31, 2020, the investment had an amortized cost of $154,000 and a fair value of $156,900.
On December 31, 2020 Angel Company will report the following account balance information related to its debt investments.
Answer:
Account Name Section Amount
Debt Investments $
Fair Value Adjustment $
Unrealized Holding Gain or Loss $
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