Purchases of common stock by Jamison December 31 2016. Company Invested In Cost Fair Value Readfield 125,000
Question:
Purchases of common stock by Jamison December 31 2016.
Company Invested In | Cost | Fair Value |
Readfield | 125,000 | 115,500 |
Lee | 100,000 | 80,000 |
Stern | 250,000 | 300,000 |
Jones | 180,000 | 190,000 |
These are classified as trading security by Jamison, who uses the portfolio approach
During 2017 lee company's stock was sold for 102,000 and Jamison purchased common stock of earn hart company at a cost of 163,300 at the end of 2017 the fair values of the trading securities are as follows
Readfield 111,800
Stern 310,000
Jones 171,600
Earn hart 159,250
a) Make the adjustment entry for the portfolio at December 31 2016 to report the fair value of investment in the balance sheet
b) Prepare the journal entry to record the sale of lee company's stock in Jamison’s book in 2017
c) Prepare the journal entry to record the purchase of Earn hart's common stock by Jamison
d) Calculate the fair value of the portfolio as of December 31 2017
e) Make the adjustment entry for the portfolio at December 31 2017 to report the fair value of investment in the balance sheet.
Expert Answer:
Answer a make the adjustment entry for the portfolio at december 31 2016 to report the fair value of investment in the balance sheet Journal Entries f... View the full answer
