Bramble Corp. has the following portfolio of securities acquired for trading purposes and accounted for using...

 

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Bramble Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2017, the end of the company's third quarter: Investment 45,000 common shares of Yuen Inc. 2,700 preferred shares of Monty Ltd. 102,600 1,100 common shares of Oakwood Inc. 99,000 Cost $229,500 Fair Value $180,000 108,000 98,450 On October 8, 2017 (4th quarter), the Yuen shares were sold for $5.10 per share. On November 16, 2017, 3,000 common shares of Patriot Corp. were purchased at $43.30 per share. Bramble pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2017, the fair values of the shares held were as follows: Monty $101,300; Patriot $115,500; and Oakwood $111,650. Bramble prepares financial statements every quarter. REQUIRED: a) Make the journal entry recorded by Bramble at September 30, 2017 to adjust the portfolio to market? b) Prepare journal entries for all purchases, sales and adjusting entries related to the portfolio for the fourth quarter of 2017. c) How will the investments be reported on the balance sheet at December 31, 2017? Bramble Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2017, the end of the company's third quarter: Investment 45,000 common shares of Yuen Inc. 2,700 preferred shares of Monty Ltd. 102,600 1,100 common shares of Oakwood Inc. 99,000 Cost $229,500 Fair Value $180,000 108,000 98,450 On October 8, 2017 (4th quarter), the Yuen shares were sold for $5.10 per share. On November 16, 2017, 3,000 common shares of Patriot Corp. were purchased at $43.30 per share. Bramble pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2017, the fair values of the shares held were as follows: Monty $101,300; Patriot $115,500; and Oakwood $111,650. Bramble prepares financial statements every quarter. REQUIRED: a) Make the journal entry recorded by Bramble at September 30, 2017 to adjust the portfolio to market? b) Prepare journal entries for all purchases, sales and adjusting entries related to the portfolio for the fourth quarter of 2017. c) How will the investments be reported on the balance sheet at December 31, 2017?

Answer rating: 100% (QA)

a b c Since the shares are held for trading purposes as on ... View the full answer