Trent Corporation's balance sheet at December 31, 2009, showed the following:
Short-term investments, at fair value $46,500
Trent Corporation's trading portfolio of stock investments consisted of the following at December 31, 2009:
During 2010, the following transactions took place:
Feb. 5 Sold 50 shares of Carey common stock for $8,000.
Mar. 30 Purchased 25 shares of Hill common stock for $950.
Sept. 9 Purchased 50 shares of Hill common stock for $2,000.
At year end on December 31, 2010, the market values per share were:
Instructions
(a) Prepare the journal entries to record the 2010 stock transactions.
(b) On December 31, 2010, prepare any adjusting entry that might be necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Trent Corporation's balance sheet at December 31, 2010.

Question

Trent Corporation's balance sheet at December 31, 2009, showed the following:
Short-term investments, at fair value $46,500
Trent Corporation's trading portfolio of stock investments consisted of the following at December 31, 2009:  
During 2010, the following transactions took place:
Feb. 5 Sold 50 shares of Carey common stock for $8,000.
Mar. 30 Purchased 25 shares of Hill common stock for $950.
Sept. 9 Purchased 50 shares of Hill common stock for $2,000.
At year end on December 31, 2010, the market values per share were:  
Instructions
(a) Prepare the journal entries to record the 2010 stock transactions.
(b) On December 31, 2010, prepare any adjusting entry that might be necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Trent Corporation's balance sheet at December 31, 2010.

Quizplus · Accepted Answer

The Answer of Trent Corporation's balance sheet at December 31, 2009, showed the following:
Short-term investments, at fair value $46,500
Trent Corporation's trading portfolio of stock investments consisted of the following at December 31, 2009:  
During 2010, the following transactions took place:
Feb. 5 Sold 50 shares of Carey common stock for $8,000.
Mar. 30 Purchased 25 shares of Hill common stock for $950.
Sept. 9 Purchased 50 shares of Hill common stock for $2,000.
At year end on December 31, 2010, the market values per share were:  
Instructions
(a) Prepare the journal entries to record the 2010 stock transactions.
(b) On December 31, 2010, prepare any adjusting entry that might be necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Trent Corporation's balance sheet at December 31, 2010.

Trent Corporation's Balance Sheet at December 31, 2009, Showed the Following