During 2016,Largent Enterprises purchased stock as follows:
May 17,Purchased 1,000 shares of Nugent common stock for $80 per share.
July 12,Purchased 400 shares of Alfredo common stock at $60 per share,plus a $600 brokerage commission.
Largent accounts for these investments as securities available for sale.At December 31,2016,the market values of the securities were as follows:

Required:
(1. )Prepare the journal entries to record the acquisition of the two investments.
(2. )Prepare any necessary adjusting entries assuming the stocks are both classified as available for sale securities.

Question

During 2016,Largent Enterprises purchased stock as follows:
May 17,Purchased 1,000 shares of Nugent common stock for $80 per share.
July 12,Purchased 400 shares of Alfredo common stock at $60 per share,plus a $600 brokerage commission.
Largent accounts for these investments as securities available for sale.At December 31,2016,the market values of the securities were as follows:
  
Required:
(1. )Prepare the journal entries to record the acquisition of the two investments.
(2. )Prepare any necessary adjusting entries assuming the stocks are both classified as available for sale securities.

Quizplus · Accepted Answer

The Answer of During 2016,Largent Enterprises purchased stock as follows:
May 17,Purchased 1,000 shares of Nugent common stock for $80 per share.
July 12,Purchased 400 shares of Alfredo common stock at $60 per share,plus a $600 brokerage commission.
Largent accounts for these investments as securities available for sale.At December 31,2016,the market values of the securities were as follows:
  
Required:
(1. )Prepare the journal entries to record the acquisition of the two investments.
(2. )Prepare any necessary adjusting entries assuming the stocks are both classified as available for sale securities.

During 2016,Largent Enterprises Purchased Stock as Follows