Using the data in MA 3, assume that James Company purchased the voting stock of Andrew Corporation for the trading securities portfolio instead of the available for sale securities portfolio Give the journal entries for each of the transactions listed Data in MA 3 During December of the current yea...

December 2 Investments in TS A 93750 Cash A 93750 6250 shares x 15 per share 125 o ...

Using the data in MA-3, assume that James Company purchased the voting stock of Andrew Corporation for

Question:

Using the data in MA-3, assume that James Company purchased the voting stock of Andrew for the trading securities instead of the available-for-sale securities Give the journal entries for each of the transactions listed.
Data in MA-3
During December of the current year, James Company acquired some of the 50,000 outstanding shares of the common stock, par $12, of Andrew as available-for-sale investments. The accounting period for both companies ends December 31. Give the journal entries for each of the following transac-tions that occurred during the current year:
Dec. 2 Purchased 6,250 shares of Andrew at $15 per share.
Dec. 15 Andrew declared and paid a cash of $2 per share.
Dec. 31 Determined the current market price of Andrew stock to be $12 per share.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...