Question
While reviewing the March 31, 2018, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,072.
While reviewing the March 31, 2018, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,072. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.50%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2018, Business Solutions makes the following investments in trading securities:
Apr. 16 Purchases 460 shares of Johnson & Johnson stock at $45 per share plus a $370 commission. Apr. 30 Purchases 270 shares of Starbucks Corporation at $20 per share plus a $190 commission.
On June 30, 2018, the per share market price (fair value) of the Johnson & Johnson shares is $50 and the Starbucks shares is $17.
please help
Required 1 Required 2 Prepare journal entries to record the April purchases of trading securities by Business Solutions. View transaction list Journal entry worksheet 2 Record the short-term investment in 460 shares of Johnson and Johnson at $45 per share plus the broker's fee of $370 on April 16, 2018 Note: Ernter debits before credits. Debia Credit General Journal Date Apr 16 2018 5 of 5 NexStep by Step Solution
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