Prepare journal entries to record these short-term investment activities for the
ID: 2427900 • Letter: P
Question
Prepare journal entries to record these short-term investment activities for the years shown. (Ignore any year-end adjusting entries.) (Do not round your intermediate calculations.)
[The following information applies to the questions displayed below.,] Carlsville Company, which began operations in 2013, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities. 2013 Jan. 20 Feb. 9 Oct. 12 Purchased 1,000 shares of Ford Motor Co. at $26 per share plus a $125 commission. Purchased 2,300 shares of Lucent at $32 per share plus a $195 commission. Purchased 780 shares of Z-Seven at $8.10 per share plus a $95 commission. 2014 Apr. 15 July 5 July 22 Aug. 19 Sold 1,000 shares of Ford Motor Co. at $29 per share less a $295 commission. Sold 780 shares of Z-Seven at $10.50 per share less a $95 commission. Purchased 1,600 shares of Hunt Corp. at $40 per share plus a $225 commission. Purchased 1,600 shares of Donna Karan at $49.80 per share plus a $100 commission. 2015 Feb. 27 Mar. 3 June 21 June 30 Nov. 1 Purchased 3,900 shares of HCA at $37 per share plus a $410 commission. Sold 1,600 shares of Hunt at $35 per share less a $125 commission Sold 2,300 shares of Lucent at $29.75 per share less a $37 commission. Purchased 1,500 shares of Black & Decker at $47.50 per share plus a $595 commission Sold 1,600 shares of Donna Karan at $49.80 per share less a $119 commission.Explanation / Answer
JOURNAL ENTRIES
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DATE DESCRIPTION POST REF. NO DEBIT ($) CREDIT($)_______
2013
Cash a/c 73,795
October 12 Stock investment a/c 6,413
Cash a/c 6,413
2014
April 15 Cash a/c 28,705
Stock Investment a/c 26,125
Gain on sale of investments a/c 2,980
July 5 Cash a/c 8,095
Stock Investment a/c 6413
Gain on sale of Investment a/c 1682
July 22 Stock Investment a/c 64,225
Cash 64,225
Aug 19 Stock Investment a/c 79,780
Cash a/c 79,780
2015
Feb 27 Stock Investment a/c 144,710
Cash a/c 144,710
Mar 3 Cash a/c 55,875
Loss on sale of Investments a/c 8350
Stock investment a/c 64,225
June 21 Cash a/c 68,388
Loss on sale of Investment a/c 5,407
Stock investment a/c 73,795
June30 Stock Investment a/c 71,845
Cash a/c 71,845
Nov. 1 Cash ac 79,561
Loss on sale of investment a/c 219
Stock investment a/c 79,780