5:34 1 lLTE : X A C 112 Assignment #3.pdf AC 112 Assignment #3 Investments...
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5:34 1 lLTE : X A C 112 Assignment #3.pdf AC 112 Assignment #3 Investments Carter Co. had the following transactions during the year, jan. 1 Purchased 1,000 shares of Apple stock for $50,000. This purchase represents less than 20% and is classified as available-for-sale. Jan 30 Apple declared and paid a 5.15 per share dividend. Feb. 1 Sold merchandise to the Sumito Co. of Japan. The merchandise was sold for 2,000,000 yen. Payment is due in 28 days. The current exchange rate is $0.0087 Feb 15 Purchased 2.000 shares of Wal-Mart stock for $110,000. This investment represents less than 20% ownership, and is classified as available for sale Feb 28 Received amount due from Sumito Co. The current exchange rate is SOOBS March 1 Sold the investment in Apple for $54,000. March 30 Recorded quarterly fair value adjustment, Wal-Mart market price per share is $56 April 1 Sold Wal-Mart Investment for $107.000 April 30 Purchased merchandise from the Garcia Co. of Mexico. The merchandise was purchased for 50,000 pesos. Payment is due in 30 days. The exchange rate on this day was $0.0924 May 30 Paid the balance due to Garcia Co. The exchange rate is $0.0928 Required: 1. Prepare the necessary journal entries for these transactions
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