On October 4, 2010, Collins Company purchased 100 shares of Steph Company common stock for $64 per

Question:

On October 4, 2010, Collins Company purchased 100 shares of Steph Company for $64 per share as a temporary investment in securities available for sale. On December 31, 2010, the stock had a fair value of $63 per share, and on February 8, 2011, Collins sold the stock for $67 per share.

Required
In journal entry form, prepare the worksheet entries to record these transactions for the Collins Company’s 2010 and 2011 statement of cash flows.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...