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E17-11B (Equity Securities Entries) Grander Skys Corporation made the following cash purchases of securities during 2014, which is the first year in which Grander Skys invested in securities. 1. On March 31, purchased 25,000 shares of Carrot Corp.?s prefe

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E17-11B (Equity Securities Entries) Grander Skys Corporation made the following cash purchases of securities;during 2014, which is the first year in which Grander Skys invested in securities.;1. On March 31, purchased 25,000 shares of Carrot Corp.?s preferred stock at $21.60 per share plus commission $3,650.;2. On May 10, purchased 1,000 shares of Pepper Co.?s common stock at $6.50 per share plus commission;$890.;3. On August 25, purchased 17,000 shares of Onions Inc.?s preferred stock at $13.75 per share plus commission $1,860.;On August 25, 2014, Grander Skys sold 10,000 shares of Carrot Corp.?s preferred stock at a market price of $26.25 per share less brokerage commissions, taxes, and fees of $1,550. The year-end fair values per share were: Carrot $30.00, Pepper $6.10, and Onion $14.50. In addition, the chief accountant of Grander Skys told you that Grander Skys Corporation plans to hold these securities for the long term but may sell them in order to earn profits from appreciation in prices.;Instructions;(a) Prepare the journal entries to record the above three security purchases.;(b) Prepare the journal entry for the security sale on August 25.;(c) Compute the unrealized gains or losses and prepare the adjusting entries for Grander Skys on December;31, 2014.

 

Paper#78457 | Written in 18-Jul-2015

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