Andrews, Inc., purchased the following securities during 2012: During 2012, Andrews received interest of $1,400 and dividends
Question:
Andrews, Inc., purchased the following securities during 2012:
During 2012, Andrews received interest of $1,400 and dividends of $600 on its investments. On September 29, 2012, Andrews sold one-half of Security 1 for $1,600. On December 31, 2012, the portfolio of securities had the following fair market values:
Security Fair Market Value
1 $ 1,700
2 3,600
3 4,000
4 1,900
5 12,000
Andrews had no balance in its market adjustment accounts at the beginning of the year. Prepare the journal entries required to record the purchase of the securities, the receipt of interest and dividends, the sale of securities, and the adjustments required atyear-end.
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...
Step by Step Answer:
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain