Carlsville Company, which began operations in 2017, invests its idle cash in tra

Question

Carlsville Company, which began operations in 2017, invests its idle cash in trading lowing transactions are from its short-term investments in trading securities. securities. The fol PROBLEM SET A Problem 15-1A Recording transactions and fair value adjustments for 2017 Jan. 20 Purchased 800 shares of Ford Motor Co. at $26 per share plus a $125 commission. Feb. 9 Purchased 2.200 shares of Lucent at $44.25 per share plus a $578 commission. Oct. 12 Purchased 750 shares of Z-Seven at $7.50 per share plus a $200 commission. Dec. 31 Fair value of the short-term investments in trading securities is $130,000 2018 trading securities P1 Apr. 15 July 5 July 22 Aug. 19 Dec. 31 Sold 800 shares of Ford Motor Co. at $29 per share less a S285 commission Sold 750 shares of Z-Seven at $10.25 per share less a $102.50 commission Purchased 1,600 shares of Hunt Corp. at $30 per share plus a $444 commission. Purchased 1.800 shares of Donna Karan at $18.25 per share plus a $290 commission. Fair value of the short-term investments in trading securities is $160,000. Check Dec 31,2018.C Trading. $24 834

Explanation / Answer

Journal Entries :-

Date Particulars Debit($) Credit($) Jan 20, 2017 Trading Securities A/c Dr. 20925 To Cash A/c ((800*$26)+$125) 20925 Feb 9, 2017 Trading Securities A/c Dr. 97928 To Cash A/c ((2200*$44.25)+$578) 97928 Oct 12, 2017 Trading Securities A/c Dr. 5825 To Cash A/c ((750*$7.50)+$200) 5825 April 15, 2018 Cash A/c Dr. ((800*$29)-285) 22915 To Trading Securities A/c 20925 To Gain on Sale of Trading Securities A/c 1990 July 5, 2018 Cash A/c Dr. (750*$10.25)-$102.5) 7585 To Trading Securities A/c 5825 To Gain on Sale of Trading Securities A/c 1760 July 22, 2018 Trading Securities A/c Dr. 48444 To Cash A/c ((1600*$30)+$444) 48444 Aug 19, 2018 Trading Securities A/c Dr. 33140 To Cash A/c ((1800*$18.25)+$290) 33140 Feb 27, 2019 Trading Securities A/c Dr. 116020 To Cash A/c ((3400*$34)+$420) 116020 Mar 3, 2019 Cash A/c Dr. ((1600*$25)-$250) 39750 Loss on Sale of Securities A/c Dr. 8694 To Trading Securities A/c ((1600*$30)+$444) 48444 Jun 21, 2019 Cash A/c Dr. ((2200*$42)-$420) 91980 Loss on Sale of Securities A/c Dr. 5948 To Trading Securities A/c 97928 Jun 30, 2019 Trading Securities A/c Dr. 57595 To Cash A/c ((1200*$47.5)+$595) 57595 Nov 1, 2019 Cash A/c Dr.((1800*$18.25)-$309) 32541 Loss on Sale of Securities A/c Dr. 599 To Trading Securities A/c((1800*$18.25)+$290) 33140

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