While reviewing the March 31, 2010, balance sheet of Success Systems, Adriana Lopez notes that the business
Question:
April 16 Purchases 400 shares of Johnson & Johnson stock at $50 per share plus $300 commission.
April 30 Purchases 200 shares of Starbucks Corporation at $22 per share plus $250 commission.
On June 30, 2010, the per share market price (fair value) of the Johnson & Johnson shares is $55 and the Starbucks shares is $19.
Required
1. Prepare journal entries to record the April purchases of trading securities by Success Systems.
2. On June 30, 2010, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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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