EA-4 (Algo) Recording Transactions in the Equity Securities Portfolio LOA-2 On March 10, 2019, Dearden,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
EA-4 (Algo) Recording Transactions in the Equity Securities Portfolio LOA-2
On March 10, 2019, Dearden, Inc., purchased 10,100 shares of Jaffa stock for $53 per share. Management intends to hold the securities long term. Deardens year ends on December 31. The following information pertains to the price per share of Jaffa stock:
Stock Price
12/31/2019
$
51
12/31/2020
54
12/31/2021
50
Dearden sold all of the Jaffa stock on September 12, 2022, at a price of $48 per share.
Prepare any journal entries that are required by the facts presented in this case. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the purchase of equity securities on March 10, 2019.
2. Recognize the fair value of investments on December 31, 2019.
3. Recognize the fair value of investments on December 31, 2020.
4. Recognize the fair value of investments on December 31, 2021.
5. Recognize the fair value of investments on September 12, 2022.
6. Record the cash received from the sale of the equity securities on September 12, 2022.
Date
General Journal
Debit
Credit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
