Description of this paper

I have a question whether trading securities need...

Description

Solution


Question

I have a question whether trading securities need to be reclassified to long term securities. Could you provide us with a list all trading securities, giving the cost and market value of each at December 31, 20X3 and December 31, 20X4? Our investments in trading securities at December 31, 20X4 are as follows: Number of Shares Cost Market Value General Electric 200 $15,000 $16,400 General Motors 1,225 7,000 9,720 Our investments in trading securities at December 31, 20X3 were as follows: Number of Shares Cost Market Value General Electric 200 $15,000 $17,240 General Mills 300 18,000 19,400 General Motors 1,225 7,000 10,100 General Mills, which cost $18,000, was sold for $20,100, net of commissions. 6. Since you still own General Electric and General Motors, should these be reclassified to long-term securities? Well, our intent in holding these securities is still to sell them as soon as possible for a profit, so we think they qualify as trading securities. The market is just not cooperating with us at the moment. If so, what should be the journal entries?

 

Paper#3106 | Written in 18-Jul-2015

Price : $25
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