Trans America Trust Co. owns both trading and available-for-sale securities. The securities shown on page 14-70 were

Question:

Trans America Trust Co. owns both trading and available-for-sale securities. The securities shown on page 14-70 were owned on December 31, 2012.
Trading Securities:
Trans America Trust Co. owns both trading and available-for-sale securities.

Available-for-Sale Securities:

Trans America Trust Co. owns both trading and available-for-sale securities.

The following transactions occurred during 2013:
(a) Sold 500 shares of West Data, Inc., for $9,500.
(b) Sold 200 shares of Disks, Inc., for $3,000.
(c) Transferred all shares of Albert Groceries, Inc., to the available-for-sale portfolio when the total fair value was $12,900.
(d) Transferred the remaining shares of Disks, Inc., to the trading securities portfolio when the market price was $20 per share. These shares were subsequently sold for $18 per share.
At December 31, 2013, market prices for the remaining securities were as follows:
Security Market Price per Share
Albert Groceries, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22
West Data, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Steel Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Dairy Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Vern Movies, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Instructions:
Prepare all journal entries necessary to record Trans America Trust Co.'s marketable equity securities transactions and year-end adjustments for 2013. Assume that all declines in fair value are temporary?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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