Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.   For the Dec 31ST Adjustment Period what formula would I use? It's the only one that I can not figure out. Apr.   16   Purchased 5,000 shares of Lafayette Co. stock at $26 per share. July   7   Purchased 3,500 shares of CVF Co. stock at $51 per share.     20   Purchased 1,600 shares of Green Co. stock at $18 per share. Aug.   15   Received an $1.20 per share cash dividend on the Lafayette Co. stock.     28   Sold 3,000 shares of Lafayette Co. stock at $29 per share. Oct.   1   Received a $3.30 per share cash dividend on the CVF Co. shares. Dec.   15   Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares.     31   Received a $2.70 per share cash dividend on the CVF Co. shares.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.
 

For the Dec 31ST Adjustment Period what formula would I use? It's the only one that I can not figure out.

Apr.   16   Purchased 5,000 shares of Lafayette Co. stock at $26 per share.
July   7   Purchased 3,500 shares of CVF Co. stock at $51 per share.
    20   Purchased 1,600 shares of Green Co. stock at $18 per share.
Aug.   15   Received an $1.20 per share cash dividend on the Lafayette Co. stock.
    28   Sold 3,000 shares of Lafayette Co. stock at $29 per share.
Oct.   1   Received a $3.30 per share cash dividend on the CVF Co. shares.
Dec.   15   Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares.
    31   Received a $2.70 per share cash dividend on the CVF Co. shares.
For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was
reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the
change in total assets must agree with the change in total equity.
Show less A
Change in
Change in equity:
As a direct
As a
component of component of
net income
Total change
in equity
Total assets
stockholders'
equity
Apr. 16) Purchased 5,000 shares of Lafayette Co. stock at $26 per
share.
$
2$
$
Jul. 7) Purchased 3,500 shares of CVF Co. stock at $51 per share.
Jul. 20) Purchased 1,600 shares of Green Co. stock at $18 per share.
Aug. 15) Received an $1.20 per share cash dividend on the Lafayette
Co. stock.
6,000
6,000
6,000
Aug. 28) Sold 3,000 shares of Lafayette Co. stock at $29 per share.
9,000
9,000
9,000
Oct. 1) Received a $3.30 per share cash dividend on the CVF Co.
shares.
11,550
11,550
11,550
Dec. 15) Received a $1.40 per share cash dividend on the remaining
Lafayette Co. shares.
Dec. 31) Received a $2.70 per share cash dividend on the CVF Co.
2,800
2,800
2,800
9,450
9,450
9,450
shares.
Dec. 31) Adjusted the securities to year-end fair value.
Totals
$
38,800
$
38,800
$
$
38,800
Transcribed Image Text:For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. Show less A Change in Change in equity: As a direct As a component of component of net income Total change in equity Total assets stockholders' equity Apr. 16) Purchased 5,000 shares of Lafayette Co. stock at $26 per share. $ 2$ $ Jul. 7) Purchased 3,500 shares of CVF Co. stock at $51 per share. Jul. 20) Purchased 1,600 shares of Green Co. stock at $18 per share. Aug. 15) Received an $1.20 per share cash dividend on the Lafayette Co. stock. 6,000 6,000 6,000 Aug. 28) Sold 3,000 shares of Lafayette Co. stock at $29 per share. 9,000 9,000 9,000 Oct. 1) Received a $3.30 per share cash dividend on the CVF Co. shares. 11,550 11,550 11,550 Dec. 15) Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares. Dec. 31) Received a $2.70 per share cash dividend on the CVF Co. 2,800 2,800 2,800 9,450 9,450 9,450 shares. Dec. 31) Adjusted the securities to year-end fair value. Totals $ 38,800 $ 38,800 $ $ 38,800
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Investments and Financial instruments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education