Here is Maple Companys portfolio of long-term available-for-sale securities at December 31, 2011: Cost 1,400 shares of Wickham Inc. common stock $73,500 1,200 shares of Kerry Corporation common stock 84,000 800 shares of H. Kelso Corporation preferred stock 33,600 On
Here is Maple Company’s portfolio of long-term available-for-sale securities at December 31, 2011:
1,400 shares of Wickham Inc. common stock $73,500
800 shares of H. Kelso Corporation preferred stock 33,600
On December 31, the total cost of the portfolio equaled the total fair value. Maple had the following transactions related to the securities during 2012.
Jan. 20 Sold 1,400 shares of Wickham Inc. common stock at $55 per share less brokerage fees of $1,100.
Feb. 8 Received cash dividends of $0.40 per share on H. Kelso Corporation preferred stock.
18 Sold all 800 shares of H. Kelso preferred stock at $35 per share less brokerage fees of $360.
At December 31, 2012, the fair values of the securities were:
Maple uses separate account titles for each investment, such as Investment in Kerry Corporation Common Stock.
(a) Prepare journal entries to record the transactions.
(b) Post to the investment accounts. (Use separate T accounts for each investment.)
(c) Prepare the adjusting entry at December 31, 2012, to report the portfolio at fair value.
(d) Show the balance sheet presentation at December 31, 2012.
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