Western Capital Inc. is a regional investment company that began operations on January 1, 2010. The following
Question:
Western Capital Inc. is a regional investment company that began operations on January 1, 2010. The following transactions relate to trading securities acquired by Western Capital Inc., which has a fiscal year ending on December 31:
2010
Feb. 3. Purchased 2 ,500 shares of Titan Inc. as a trading security at $35 per share plus a brokerage commission of $500.
Mar. 12. Purchased 1,200 shares of Quick Tyme Inc. as a trading security at $14 per share plus a brokerage commission of $240.
May 15. Sold 600 shares of Titan Inc. for $36 per share less a $80 brokerage commission.
June 12. Received an annual dividend of $0.12 per share on Titan Inc. stock.
Dec. 31. The portfolio of trading securities was adjusted to fair values of $15 and $39 per share for Quick Tyme Inc. and Titan Inc., respectively.
2011
Apr. 9. Purchased 1,100 shares of Aspire Inc. as a trading security at $41 per share plus a $165 brokerage commission.
June 15. Received an annual dividend of $0.15 per share on Titan Inc. stock.
Aug. 20. Sold 200 shares of Aspire Inc. for $35 per share less a $60 brokerage commission.
Dec. 31. The portfolio of trading securities was adjusted to fair value using the following fair values per share for the trading securities:
Aspire Inc. ..... $31
Quick Tyme Inc. ... 16
Titan Inc. ...... 37
The portfolio of trading securities was adjusted to fair value.
Instructions
1. Journalize the entries to record these transactions.
2. Prepare the investment-related current asset balance sheet disclosures for Western Capital Inc. on December 31, 2011.
3. How are unrealized gains or losses on trading investments disclosed on the financial statements of Western Capital Inc.?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...
Step by Step Answer:
1 2010 Feb 3 Trading Investments x Titan Inc 88000 Cash 88000 2500 shares 35 per share 500 Mar 12 Trading Investments x Quick Tyme Inc 17040 Cash 1704...View the full answer
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
