Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

student-servlets, LabServleticcid=9978 On December 31, 2014, Swan Furnace Cleaners' year-end, the company had the following temporary investments, all of which were acquired on November 1,

image text in transcribed
image text in transcribed
student-servlets, LabServleticcid=9978 On December 31, 2014, Swan Furnace Cleaners' year-end, the company had the following temporary investments, all of which were acquired on November 1, 2014 Investment NO. of shares Original cost Unit market value on December 31, 2014 Softouch Co. common shares 500 $70 $62 Biotech Company preferred shares 850 $15 $20 In 2015, Swan Fumace Cleaners completed the following transactions: January 18: Received cash dividends per share: Softouch Co., 90.66; and Biotech Company, 80.79. October 4: Sold 690 shares of Biotech Company preferred for $21 per share. December 31: Market values of two marketable securities were: Softouch Co.common, 566, and Biotech Company preferred, $22. Swan Furace Cleaners management has determined that these investments should be classified as held for trading, Swan Furace Cleaners follows ASPE. a) Record the following entries: the purchase of the securities, the adjusting entry required at the end of 2014, and all entries required in 2015. For each specific HFT Investment, use a separate asset account. Note: For the sale entry, follow the same methodology as shown in the textbook, Section 8.2.1, sale for HFT shares. Enter an appropriate description when entering the transaction the journal. Dates must be entered in the format ddimmm (e. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places General Journal Page Account Explanation PR Debit Credit 2014 Date +- 2015 + b) Calculate the unrealized gain (loss) on the held-for-trading investment for 2014. Please make sure your final answer(s) are accurate to the nearest whole number. Unrealized gain (loss) = $ c) Give the asset line item and amounts that would be reported on the 2014 and 2015 balance sheets. If no account will be affected please choose 'No account affected'. Please make sure your final answer(s) are accurate to 2 decimal places. 2014 2015

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Sampling An Introduction

Authors: Dan M. Guy, D. R. Carmichael, O. Ray Whittington

5th Edition

047137590X, 978-0471375906

More Books

Students also viewed these Accounting questions

Question

Describe how to train managers to coach employees. page 404

Answered: 1 week ago

Question

Discuss the steps in the development planning process. page 381

Answered: 1 week ago