On August 10, 2016, the Green and Grey Company invest in equity securities costing $3,000,000 and classifies them as AFS investments. On September 30, 2016, the value of the equity securities falls to $2,910,000 and Green and Grey pay $100,000 for March 2017 put options with a strike price of $3,000,000 as a fair value hedge of its equity investment. On December 31, 2016, the company's fiscal year end, the options have a fair value of $76,600 and the securities have a fair value of $2,940,000. Green and Grey sells the options on March 1, 2017 for $159,800 when the fair value of the securities is $2,850,000 and sells the securities for $2,900,000 on March 30, 2017. Prepare the journal entries made by Green and Grey Company on August 10, 2016 September 30, 2016 December 31, 2016 March 1, 2017 March 30, 2017.

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Lets prepare the journal entries for each relevant date 1 August 10 2016 Purchase of equity securiti... View the full answer