During 2015 and 2016, Foley Co. made the following journal entries to account for transactions involving trading
Question:
During 2015 and 2016, Foley Co. made the following journal entries to account for transactions involving trading securities:
The beginning balance in Market Adjustment-Trading Securities was a $900 credit. There were no other entries in 2015.
There were no other entries in 2016.
Instructions:
For each incorrect entry, give the entry that should have been made. Assume the revenue approach is used. Ignore any premium or discount amortization on U.S. Treasury bonds.
Transcribed Image Text:
2015 (a) Nov. 1 Innsimmt inliading Sourities 7% US. licasury Bonds 52,417 Cash 52,417 To record the purchase of $50,000 of U.S. Treasury bonds at 102.50. Interest is payable semiannually on January 1 and July1 (b) Dec.31 Unrealized Increase/Decrease in Value of Available-for-Sale Securities 2,227 Market Adjustment-Trading Securities 2,227 To record the decrease in fair value of the current investment securities based on the following data. Cost Market Market Adjustment 26,42025,260 36,200 50000 $113,687 111460 $1,160 Cr. 1,350 Dr. 2,417 Cr $2,227 Cr. 34,850 52,417 796 US Treasury bonds Total 2016 (c) Jan. Cash 1,750 1,750 To record interest revenue for six months. (d) July1 Cash 1,750 Interest Revenue 1,750 To record interest revenue for six months. (e) Dec. 6 Investment in Available-for-Sale Securities-Lawlor Co 26,420 Investment in Trading Securities-Lawlor Co. 26,420 To reclassify Lawlor Co. stock from trading securities to available-for-sale securities. Market price was $26,100 at the date of reclassification ( Dec.31 Unrealized Increase/Decrease in Value of Available-for-Sale Securities. Market Adjustment-Available-for-Sale Securities Market Adjustment-Trading Securities 937 220 To record the decrease in fair value of available-for-sale securities based on the following data. Cost Market Market Adjustment Hurst Co. stock 7% US Treasury bonds Lawlor Co. stock 34,850 35,350 52,417 51,200 26,420 500 Dr. 1,217 Cr 220 Cr. 937 Cr 26,200 113,687 112,750 Total
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
a 2015 Nov 1 Investment in Trading SecuritiesTreasury Bonds 51250 Interest Revenue 1167 Cash 52417 5...View the full answer
Answered By
Madhur Jain
I have 6 years of rich teaching experience in subjects like Mathematics, Accounting, and Entrance Exams preparation. With my experience, I am able to quickly adapt to the student's level of understanding and make the best use of his time.
I focus on teaching concepts along with the applications and what separates me is the connection I create with my students. I am well qualified for working on complex problems and reaching out to the solutions in minimal time. I was also awarded 'The Best Tutor Award' for 2 consecutive years in my previous job.
Hoping to get to work on some really interesting problems here.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
During 2011 and 2012, Foley Co. made the following journal entries to account for transactions involving trading securities: The beginning balance in Market Adjustment'Trading Securities was a $900...
-
During 2013 and 2014, Foley Co. made the following journal entries to account for transactions involving trading securities: 2013 (a) Nov. 1 Investment in Trading Securities-7% U.S. Treasury Bonds ....
-
During 2008 and 2009,Kopson Co. made the following journal entries to account for transactions involving trading securities: 2008 (a) Nov. 1 Investment in Trading Securities'10% U.S. Treasury Bonds ....
-
Featherstone Inc. reported the following data: Net income ................................... $296,000 Depreciation expense ................... 113,100 Gain on disposal of equipment ...... 58,500...
-
The same generally accepted accounting principles apply to all companies.
-
Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $389.95 and its...
-
Find the natural frequencies of vibration of the beam considered in Problem 12.7 using one finite element (Fig. 12.19). Data From Problem 12.7:- Find the stiffness and mass matrices of the beam...
-
Vassar Corp. has incurred substantial losses for several years and has decided to declare bankruptcy. The company petitioned the court for protection from creditors on March 31, 2010, and submitted...
-
1. Distributed Workforce: Recommend a technology or specific tool that could promote connections in a distributed workforce. Be sure to include the following as part of your recommendation: A....
-
1. What might the hotel offer to the couple currently occupying the bridal suite to encourage them to move to another room? 2. What might the hotel offer the arriving couple as an incentive to select...
-
On December 31, 2013, Durst Company's balance sheet showed the following balances related to its securities accounts: Durst's securities portfolio on December 31, 2013, was made up of the following...
-
The investment portfolio of Morris Inc. on December 31, 2014, contains the following securities: Opus Co. common, 3% ownership, 5,000 shares; cost, $100,000; fair value, $95,000; classified as a...
-
A trust owns an asset on which depreciation is claimed. The trust distributes all of its income to its sole income beneficiary. Whose taxable income is reduced by the depreciation?
-
On 1 January 2019 Planet plc began constructing an item of Machinery, the details of this are: Materials 40,000 Labour costs 15,000 Pre-production testing 5,000 Sale of by-products produced as part...
-
Carla vista co had 7 9 8 0 0 0 shares of common stock outstanding on january 1 issued 1 2 9 0 0 0 shares on may 1 purchased 6 9 0 0 0 shares of treasury stock on september 1 and issued 6 0 0 0 0...
-
Given data below answer the question. Total Per Unit 40 Sales $620,000 28 Variable expenses 434,000 Contribution margin 186,000 $12 Fixed expenses 146,400 Net operating income $ 39,600 Required: 1....
-
Techdirt was started in 1997 by Mike Masnick and grew into a blog that analyzes and offers insight into news stories about changes in government policy, technology, and legal issues that affect...
-
Calculate the rolling budget (continuous budget) based on the below and find the operating profit Realized budget Sales pcs: 10000 sales revenue: 500000 variable costs: 292798 margin: 207202 fixed...
-
In Exercises a parametrization is given for a curve. (a) Graph the curve. What are the initial and terminal points, if any? Indicate the direction in which the curve is traced. (b) Find a Cartesian...
-
In Problem 8.43, determine the smallest value of for which the rod will not fall out of the pipe. IA -3 in.-
-
Outdoor Recreation Products Inc. had 50,000 shares of common stock outstanding at the end of 2012. During 2013 and 2014, the following transactions took place. 2013 Mar. 31 Sold 10,000 shares at $24....
-
The following condensed financial statements for Hudson Corporation were prepared by the accounting department. Hudson Corporation Balance Sheet December 31, 2013 Assets . . . . . . . . . . . . . . ....
-
Great Northern Inc. reported the following comparative information in the Stockholders' Equity section of its 2014 balance sheet. In addition, company records show that the following transactions...
-
Should an MNC purchase Nestl stock yes or no? Recommendations should include the company's sustainability plans, the image of the company, Gordon Growth result, and financial performance. Any...
-
Can the sponsor, or general partner, continue to achieve such high returns? Framed another way, can the general partner earn a 25+% return on the $6,305,000 received at the end of the 10th year? If...
-
Select a hospital that publicly displays their financial performance on their website. Describe the Profit Loss Statement: Review top revenue items Review cost comparison compared to previous year...
Study smarter with the SolutionInn App