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Clarity Corporation Had the Following Transactions Involving Investments in Trading

Question 158

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Clarity Corporation had the following transactions involving investments in trading securities during the year.Prior to these transactions,Clarity never had any investments in trading securities.Prepare the required general journal entries to record these transactions.
 Feb. 16 Purchased 800 shares of GN Corporation stock at $28 per plus a $400 brokerage fee  Feb. 26 Purchased 500 shares of Honeyville Co. stock at $19 per share plus a $300 brokerage fee.  Mar. 2 Received a $0.95 per share dividend from the GN Corporation.  Mar. 28 Sold 200 shares of GN Corporation stock for $31 per share less a $150 brokerage fee.  Apr. 20 Sold 150 shares of Honeyville Co. stock at $17 per share less a $100 brokerage  fee.  Apr. 30 The company is preparing quarterly financial statements, so it must prepare an  adjusting entry for the market adjustment on the trading securities. At April 30 the GN stock has a market value of $30 per share, and the Honeyville stock has  a market value of $16 per share. \begin{array}{|c|c|}\hline \text { Feb. } 16 & \begin{array}{l}\text { Purchased } 800 \text { shares of GN Corporation stock at } \$ 28 \text { per plus a } \$ 400 \\\text { brokerage fee }\end{array} \\\hline \text { Feb. } 26 & \begin{array}{l}\text { Purchased } 500 \text { shares of Honeyville Co. stock at } \$ 19 \text { per share plus a } \$ 300 \\\text { brokerage fee. }\end{array} \\\hline \text { Mar. } 2 & \text { Received a } \$ 0.95 \text { per share dividend from the GN Corporation. } \\\hline \text { Mar. } 28 & \begin{array}{l}\text { Sold } 200 \text { shares of GN Corporation stock for } \$ 31 \text { per share less a } \$ 150 \\\text { brokerage fee. }\end{array} \\\hline \text { Apr. } 20 & \begin{array}{l}\text { Sold } 150 \text { shares of Honeyville Co. stock at } \$ 17 \text { per share less a } \$ 100 \text { brokerage } \\\text { fee. }\end{array} \\\hline \text { Apr. } 30 & \begin{array}{l}\text { The company is preparing quarterly financial statements, so it must prepare an } \\\text { adjusting entry for the market adjustment on the trading securities. At April } 30 \text {, } \\\text { the GN stock has a market value of } \$ 30 \text { per share, and the Honeyville stock has } \\\text { a market value of } \$ 16 \text { per share. }\end{array} \\\hline\end{array}

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