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PE 5 Here is Maple Company?s portfolio of long-ter...

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PE 5 Here is Maple Company?s portfolio of long-term available-for-sale securities at December 31, 2011: Cost 1,400 shares of Wickham Inc. common stock $73,500 1,200 shares of Kerry Corporation common stock 84,000 800 shares of H. Kelso Corporation preferred stock 33,600 On December 31, the total cost of the portfolio equaled the total fair value. Maple had the following transactions related to the securities during 2012. Jan. 20 Sold 1,400 shares of Wickham Inc. common stock at $55 per share less brokerage fees of $1,100. 28 Purchased 400 shares of $10 par value common stock of M. McLain Corporation at $78 per share plus brokerage fees of $480. 30 Received a cash dividend of $1.25 per share on Kerry Corporation common stock. Feb. 8 Received cash dividends of $0.40 per share on H. Kelso Corporation preferred stock. 18 Sold all 800 shares of H. Kelso preferred stock at $35 per share less brokerage fees of $360. July 30 Received a cash dividend of $1.10 per share on Kerry Corporation common stock. Sept. 6 Purchased an additional 600 shares of the $10 par value common stock of M. McLain Corporation at $82 per share plus brokerage fees of $800. Dec. 1 Received a cash dividend of $1.50 per share on M. McLain Corporation common stock. At December 31, 2012, the fair values of the securities were: Kerry Corporation common stock $65 per share M. McLain Corporation common stock $77 per share Maple uses separate account titles for each investment, such as Investment in Kerry Corporation Common Stock. Journalize stock transactions, and show balance sheet presentation. Instructions: ? Prepare journal entries to record the transactions. ? Post to the investment accounts. (Use separate T accounts for each investment.) ? Prepare the adjusting entry at December 31, 2012, to report the portfolio at fair value. ? Show the balance sheet presentation at December 31, 2012.

 

Paper#1196 | Written in 18-Jul-2015

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