Problem 12-5A Cost Date Account Titles and Explanation Debit Credit Jan. 20 Jan.
ID: 2473003 • Letter: P
Question
Problem 12-5A
Cost
Date
Account Titles and Explanation
Debit
Credit
Jan. 20
Jan. 28
Jan. 30
Feb. 8
Feb. 18
July 30
Sept. 6
Dec. 1
Problem 12-5A
The following securities are in Amberwood Company’s portfolio of long-term non-trading securities at December 31, 2013.Cost
1,370 shares of Reginald Corporation common stock $69,870 1,600 shares of Elderberry Corporation common stock 97,600 1,120 shares of Mattoon Corporation preferred stock 29,120On December 31, 2013, the total cost of the portfolio equaled total fair value. Amberwood had the following transactions related to the securities during 2014.
Jan. 20 Sold all 1,370 shares of Reginald Corporation common stock at $54 per share less brokerage fees of $560. 28 Purchased 340 shares of $68 par value common stock of Hachito Corporation at $76 per share, plus brokerage fees of $590. 30 Received a cash dividend of $1.23 per share on Elderberry Corp. common stock. Feb. 8 Received cash dividends of $0.63 per share on Mattoon Corp. preferred stock. 18 Sold all 1,120 shares of Mattoon Corp. preferred stock at $25 per share less brokerage fees of $350. July 30 Received a cash dividend of $2 per share on Elderberry Corp. common stock. Sept. 6 Purchased an additional 890 shares of $10 par value common stock of Hachito Corporation at $80 per share, plus brokerage fees of $1,300. Dec. 1 Received a cash dividend of $1.7 per share on Hachito Corporation common stock.
At December 31, 2014, the fair values of the securities were:
Elderberry Corporation common stock $65 per share Hachito Corporation common stock $70 per share
Explanation / Answer
Date Account Titles and Explanation Debit Credit Jan. 20 Cash 73,420 Brokarage 560 To Reginald Corporation common stock 69,870 To Profit on sale of investment 4,110 Jan. 28 Hachito Corporation common stock 25,840 Brokarage 590 To Cash 26,430 Jan. 30 Cash 1,968 To Dividend 1,968 Feb. 8 Cash 705.6 To Dividend 705.6 Feb. 18 Cash 27650 Brokarage 350 Loss on sale of investment 1,120 To Mattoon Corp. preferred stock 29,120 July 30 Cash 3,200 To Dividend 3,200 Sept. 6 Hachito Corporation common stock 71,200 Brockrage 1,300 To Cash 72,500 Dec. 1 Cash 2,091 To Dividend 2,091