Question A: Investments At the beginning of 2019, following was the investment portfolio (trading) of Serena Corporation: Security Fair Value Cost 100 Shares of Ceppi Company common stock $ 3,200 $4,200 200 Shares of Shiyu Company common stock 11,000 12.000 14,200 16,200 During 2019, Serena entered the following transactions: Sept. 8: Sold 100 shares of Shiyu Company common stock for $4,100. Paid brokerage of $100. Oct. 23: Purchased 100 shares of Jihoon Company common stock for $8,900, Brokerage fees paid were $100. Nov. 1: Purchased 30 bonds of $1,000 each of Yiming Corporation. The bonds are dated 7/1/2019, mature on June 30, 2022, and pay interest semiannually on June and December 31. The coupon rate is 12% but the bonds were purchased at 92 plus accrued Interest. Serena follows the straight-line method of amortization. Serena can hold the bonds until maturity, and it intends to do so. Dec. 1: JiHoon Company declared and distributed a stock dividend of 200%. On December 31, 2019, the market prices of the common stock of Ceppi Company, Shiyu Company, and JiHoon Company were $34. $65, and $40 per share, respectively, and the Yiming Corporation bonds were trading at 94. Serena uses the Securities Fair Value Adjustment (AFS) account to mark the trading investments portfolio to market at the accounting period end. Required: Prepare journal entries for the transactions and events above, including the journal entries at year-end, in the books of Serena Corporation. 1. Sept. 8,2019/2 Points) 2. October 23, 2019 (2 Points) 3. November 1, 2019 (4 Points) 4. December 1, 2019 (1 Point) 5. December 31, 2019 (5 Points) Question A: Investments At the beginning of 2019, following was the investment portfolio (trading) of Serena Corporation: Security Fair Value Cost 100 Shares of Ceppi Company common stock $ 3,200 $4,200 200 Shares of Shiyu Company common stock 11,000 12.000 14,200 16,200 During 2019, Serena entered the following transactions: Sept. 8: Sold 100 shares of Shiyu Company common stock for $4,100. Paid brokerage of $100. Oct. 23: Purchased 100 shares of Jihoon Company common stock for $8,900, Brokerage fees paid were $100. Nov. 1: Purchased 30 bonds of $1,000 each of Yiming Corporation. The bonds are dated 7/1/2019, mature on June 30, 2022, and pay interest semiannually on June and December 31. The coupon rate is 12% but the bonds were purchased at 92 plus accrued Interest. Serena follows the straight-line method of amortization. Serena can hold the bonds until maturity, and it intends to do so. Dec. 1: JiHoon Company declared and distributed a stock dividend of 200%. On December 31, 2019, the market prices of the common stock of Ceppi Company, Shiyu Company, and JiHoon Company were $34. $65, and $40 per share, respectively, and the Yiming Corporation bonds were trading at 94. Serena uses the Securities Fair Value Adjustment (AFS) account to mark the trading investments portfolio to market at the accounting period end. Required: Prepare journal entries for the transactions and events above, including the journal entries at year-end, in the books of Serena Corporation. 1. Sept. 8,2019/2 Points) 2. October 23, 2019 (2 Points) 3. November 1, 2019 (4 Points) 4. December 1, 2019 (1 Point) 5. December 31, 2019 (5 Points)
