(Equity Securities Entries) McElroy Company has the following portfolio of investment securities at September 30, 2017, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2017, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2017. The December 31, 2017, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. InstructionsPrepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2017.

(Equity Securities Entries) McElroy Company has the following portfolio of investment securities at September 30, 2017, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2017, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2017. The December 31, 2017, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. InstructionsPrepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2017.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

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Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...

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Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
On December 31, 2017, Nameless Inc. provided you with the following information regarding its trading securities. December 31, 2017 Investments (Trading) Cost Fair Value SKN Inc. stock $ 40,000 $ 46,000 Derby Co. stock 101,000 99,500 Google Corp. stock 31,000 34,500 Total of portfolio $172,000 $ 180,000 All of the securities were purchased during 2017 and < 20% of total share of the company. During 2018, Nameless sold its Google Corp. stock for $33,200. The fair value of the stock on December 31, 2018, was: SKN Inc. stock—$47,600; Derby Co. stock—$95,400. (3a) Prepare the adjusting journal entry needed on December 31, 2017. (3b) Prepare the journal entry to record the sale of the Google Corp. stock during 2018. (3c) Prepare the adjusting journal entry needed on December 31, 2018.
(Equity Securities Entries and Disclosures) Parnevik Company has the following securities in its investment portfolio on December 31, 2017 (all securities were purchased in 2017): (1) 3,000 shares of Anderson Co. common stock which cost $58,500, (2) 10,000 shares of Munter Ltd. common stock which cost $580,000, and (3) 6,000 shares of King Company preferred stock which cost $255,000. The Fair Value Adjustment account shows a credit of $10,100 at the end of 2017.In 2018, Parnevik completed the following securities transactions.1. On January 15, sold 3,000 shares of Anderson’s common stock at $22 per share less fees of $2,150.2. On April 17, purchased 1,000 shares of Castle’s common stock at $33.50 per share plus fees of $1,980.On December 31, 2018, the market prices per share of these securities were Munter $61, King $40, and Castle $29. In addition, the accounting supervisor of Parnevik told you that, even though all these securities have readily determinable fair values, Parnevik will…
Flounder Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 47,500 common shares of Yuen Inc. $266,000 $190,000 3,200 preferred shares of Monty Ltd. 121,600 128,000 1,350 common shares of Oakwood Inc. 121,500 120,825 On October 8, 2023, the Yuen shares were sold for $5.60 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $43.80 per share. Flounder pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,050; Patriot $116,750; and Oakwood $137,025. Flounder prepares financial statements every quarter. (a) Your answer is partially correct. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023.…
(Equity Securities Entries) McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
Pina Colada Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 50,500 common shares of Yuen Inc. $313,100 $202,000 3,800 preferred shares of Monty Ltd. 1,650 common shares of Oakwood Inc. 144,400 152,000 148,500 147,675 On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $44.40 per share. Pina Colada pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,950; Patriot $118,250; and Oakwood $167,475. Pina Colada prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023. (Credit account titles…
Pacers Corp. Has the following portfolio of investment securities at September 30, 2018: Trading Securities Cost Fair Value Fogel Inc., common(5000 shares) $225,000 $200,000 Petra Inc., preferred(3,500 shares) 133,000 140,000 Tim Corp., common(1,000 shares) 180,000 179,000 On October 10, 2018, the Fogel shares were sold at a price of $54 per share. In addition, 3,000 shares of Tigres common stock were purchased at $59.50 per share on November 2, 2018. The December 31, 2018 fair values were: Petra $96,000; Tigres $132,000, and Tim $193,000. All of the securities are classified as trading. Required: a)Prepare the journal entries to record the sale, purchase, and adjusting entries relating to the trading securities in the last quarter of 2018 and post the entries to ledger accounts.
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]
Pacers Corp. Has the following portfolio of investment securities at September 30, 2018: Trading Securities Cost Fair Value Fogel Inc., common(5000 shares) $225,000 $200,000 Petra Inc., preferred(3,500 shares) Tim Corp., common(1,000 shares) 133,000 140,000 180,000 179,000 On October 10, 2018, the Fogel shares were sold at a price of $54 per share. In addition, 3,000 shares of Tigres common stock were purchased at $59.50 per share on November 2, 2018. The December 31, 2018 fair values were: Petra $96,000; Tigres $132,000, and Tim $193,000. All of the securities are classified as trading. wwwv Required: a)Prepare the journal entries to record the sale, purchase, and adiusting entries relating to the trading securities in the last quarter of 2018 and post the entries to ledger accounts.
Accounting Swifty Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2020, the end of the company’s third quarter: Investment Cost Fair Value 53,000 common shares of Yuen Inc. $355,100 $212,000 4,300 preferred shares of Monty Ltd. 163,400 172,000 1,900 common shares of Oakwood Inc. 171,000 170,050 On October 8, 2020, the Yuen shares were sold for $6.70 per share. On November 16, 2020, 3,000 common shares of Patriot Corp. were purchased at $44.90 per share. Swifty pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2020, the fair values of the shares held were as follows: Monty $103,700; Patriot $119,500; and Oakwood $192,850. Swifty prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2020.…
SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model. SLC Inc. prepares financial statements every quarter. At Sept 30, 2021, the end of the company’s third quarter, the following information was reported: Investment Cost Fair Value 50,000 Common Shares – Seneca Inc. $215,000 $200,000 3,500 Preferred Shares – Loyalist Inc. $135,000 $140,000 2,000 Common Shares – Algonquin Inc. $180,000 $179,000 Transactions that occurred in the fourth quarter: Oct 8, 2021 The Seneca Shares were sold for $4.30 per share Nov 16, 2021 3,000 common shares of Humber Inc. were purchased at $44.50 per share SLC Inc. pays a 1% commission on purchase and sales of all securities. At the end of the fourth quarter, on December 31, 2021, the fair value of the shares were as follows: Investment Fair Value Loyalist Inc. $106,000 Algonquin Inc. $203,000 Humber Inc. $122,000 Instructions: Prepare the journal entries to record the sale, purchase and…
Shamrock Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Horton, Inc. common (5,340 shares) Monty, Inc. preferred (3,430 shares) Oakwood Corp.common (1,040 shares) Cost $229,620 133,770 190,320 Fair Value $214,770 140,490 189,290 On October 10, 2020, the Horton shares were sold at a price of $53 per share. In addition, 3,210 shares of Patriot common stock were acquired at $54 per share on November 2, 2020. The December 31, 2020, fair values were Monty $105,670, Patriot $139,790, and Oakwood $204,600. Date Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

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Investment Securities	Cost	Fair Value
Horton, Inc. common (5,000 shares)	$215,000	$200,000
Monty, Inc. preferred (3,500 shares)	133,000	140,000
Oakwood Corp. common (1,000 shares)	180,000	179,000