Question
Record the following equity investment transactions completed by The Company during 2019. All investments use the cost method: February 15: Purchased for cash 4200 shares
Record the following equity investment transactions completed by The Company during 2019. All investments use the cost method:
February 15: Purchased for cash 4200 shares of P. Co.stock for $65 per share plus a $600 brokerage commission. April 4: Received dividends of $0.33 per share on P Co. stock. June 20: Sold 1670 shares of P Co. stock for $54 per share less a $250 brokerage commission. July 2: Purchased 5640 shares of P Co. stock for $90 per share plus a $170 brokerage commission. September 14: Received dividends of $0.57 per share on P Co. stock.
During 2019, its first year of operations, A Company purchased 4 available-for-sale investments as follows: Security Shares Purchased Total Cost Co 1 3500 $67000 Co 2 2215 $72620 Co 3 1000 $21550 Co 4 2250 $58000
Assume that as of November 30, 2019, the Co 1 stock had a market value of $23 per share, Co 2. stock had a market value of $23 per share, Co 3 stock had a market value of $38 per share and Co 4 stock had a market value of $18 per share. A Company had $36,550 shares of no par stock outstanding that was issued for $900,000. For the year ending November 30, 2019. A Company had a net income of $275,000 No dividends were paid.
1) Prepare the Stockholders Equity section of the balance sheet as of November 30, 2019
2) Prepare the Current Assets section of the balance sheet presentation for the available-for-sale securities as of November 30, 2020.
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