HomeworkLib
Question

Trading securities were sold on January 3, 2018 for $65,000. Those securities were purchased for $52,000 on November 21 2017,
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Please find below the solution.. let me know if you need any clarification.

correct answer is option b) Credit to gain on sale of trading securities of $8000.

this is because trading securities will be recorded at fair value on December end and therefore gain after decemenber is only 8000. Therefore answer is option b.

0 0
Add a comment
Know the answer?
Add Answer to:
Trading securities were sold on January 3, 2018 for $65,000. Those securities were purchased for $52,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On January 1, 2018, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond...

    On January 1, 2018, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond market value was $971,000 on December 31, 2018. Required: Prepare the appropriate journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available for sale. Held-to-maturity securities. record the unrealized holding gain or loss for trading...

  • Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a...

    Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $48,800, and the fair value was $49,900. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Dec. 31 Trading Investments Trading Investments Valuing Available-for-Sale Securities at Fair Value On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31,...

  • forget it Spreadsheet 8 - Investment in bonds/trading securities Hinton Company purchased bonds as an trading...

    forget it Spreadsheet 8 - Investment in bonds/trading securities Hinton Company purchased bonds as an trading security investment in early 2018. The company is now ready to sell the bond investment on June 20, 2019. Available accounts: Unrealized Holding Gain - NI Unrealized Holding Loss -NI Fair Value Adjustment Facts: Carrying amount of investment 12/31/18 Carrying amount of investment 6/20/2019 Fair value on 12/31/18 Fair value on 6/20/2019 $57,200 60,500 55,900 61,600 Journalize the transaction to adjust the bond investment...

  • (#9) Trading Securities On July 1, 2018, Wolfpack Corporation purchased securities which it intends to buy...

    (#9) Trading Securities On July 1, 2018, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of (a) Todd Corporation 10%, 5-year bonds with a face value of $20,000 which were purchased for $18,500 and (b) 400 shares of Cornett Company common stock which were purchased at $40 per share. Assume that on December 31, 2018, the investment in Todd Corporation bonds has a market value of $22,000, and the investment in Cornett Company...

  • On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond...

    On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond market value was $989,000 on December 31, 2018. Required: Prepare the appropriate Journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) 1. Trading securities. 2. Securities available for sale. 3. Held-to-maturity securities. View transaction list View journal entry...

  • Founded on January 1, 2017, Gehl Company had the following short-term investments in securities a...

    Founded on January 1, 2017, Gehl Company had the following short-term investments in securities at the end of 2017 and 2018 (all were held in the "trading" portfolio): 12/31/18 Fair Value $ 94,000 162,000 136,000 Equity Security cost $96,000 184,000 126,000 Required: If the company recorded a $4,000 debit to its Fair value adjustment-Trading securities account at the end of 2018 as its fair value adjustment, what must have been the unrealized gain or loss recorded at the end of...

  • 8. On May 15, 2018, Stacey Co. invests $10,000 in Dave, Inc. stock. Dave pays Stacey...

    8. On May 15, 2018, Stacey Co. invests $10,000 in Dave, Inc. stock. Dave pays Stacey a $500 dividend on November 15, 2018. Stacey sells the Dave stock on December 10, 2018, for $9,400. Assume the Stacey Co. does not have significant influence over Dave, Inc. Journalize the 2018 transactions related to Stacey's investment in Dave stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Credit Begin by journalizing Stacey's initial...

  • Midwest Bank invests in trading securities. At the beginning of December 2018, the bank held no...

    Midwest Bank invests in trading securities. At the beginning of December 2018, the bank held no trading securities. During December of 2018, it entered into the following trading securities transactions: Dec. 10 Purchased 500 shares of Carroll Company common stock for $76 per share. Dec. 21 Purchased 700 shares of Dynamo Company common stock for $35 per share. At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo...

  • On January 1, 20Y9, Valuation Allowance for Trading Investments had a zero balance

    On January 1, 20Y9, Valuation Allowance for Trading Investments had a zero balance. On December 31, 20Y9, the cost of the trading securities portfolio was $379,100, and the fair value was $348,000. Journalize the December 31, 2019, adjusting journal entry to record the unrealized gain or loss on trading investments Refer to the Chart of Accounts for exact wording of account titles.Fair Value Journal Entries, Trading Investments The investments of Charger Inc. include a single investment: 14,000 shares of Raiders Inc. common...

  • Exercise 16-12 a-b (Video) Sheridan Company has the following data at December 31, 2020. Securities Trading...

    Exercise 16-12 a-b (Video) Sheridan Company has the following data at December 31, 2020. Securities Trading Available-for-sale Cost $121,500 101,100 Fair Value $125,000 93,800 The available-for-sale securities are held as a long-term investment. Your answer is correct. Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (Credit acc entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (1) Fair Value Adjustment-Trading...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT