The following are in Jamison Companys portfolio of long-term available-for-sale securities at December 31, 2010. Cost 700 shares of Adler Corporation common stock .. $35,000 900 shares of Lynn Corporation common stock ...42,000 800 shares of Swanson Corporation preferred stock
The following are in Jamison Company’s portfolio of long-term available-for-sale securities at December 31, 2010.
800 shares of Swanson Corporation preferred stock . 22,400
On December 31, the total cost of the portfolio equaled total fair value. Jamison Company had the following transactions related to the securities during 2011.
Feb. 2 Received cash dividends of $0.40 per share on Swanson Corporation preferred stock.
10 Sold all 800 shares of Swanson Corporation preferred stock at $26 per share less brokerage fees of $180.
At December 31, 2011, the fair values of the securities were: Lynn Corporation common stock $48 per share Pesavento Corporation common stock $72 per share Jamison uses separate account titles for each investment, such as Investment in Lynn Corporation Common Stock.
(a) Prepare journal entries to record the transactions.
(b) Post to the investment accounts. (Use T accounts.)
(c) Prepare the adjusting entry at December 31, 2011, to report the portfolio at fair value.
(d) Show the balance sheet presentation at December 31, 2011, for the investment-related accounts.
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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
This problem has been solved!