Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. monty corporation made the following cash purchase

Monty Corporation made the following cash purchases of securities during 2017, which is the first...

60.1K

Verified Solution

Question

Accounting

Monty Corporation made the following cash purchases of securities during 2017, which is the first year in which Monty invested in securities. 1. On January 15, purchased 10,080 shares of Sanchez Companys common stock at $40.20 per share plus commission $2,060. 2. On April 1, purchased 5,080 shares of Vicario Co.s common stock at $62.40 per share plus commission $3,450. 3. On September 10, purchased 7,080 shares of WTA Co.s preferred stock at $31.80 per share plus commission $4,990. On May 20, 2017, Monty sold 4,080 shares of Sanchez Companys common stock at a market price of $42 per share less brokerage commissions, taxes, and fees of $3,930. The year-end fair values per share were Sanchez $36, Vicario $66, and WTA $33.60. In addition, the chief accountant of Monty told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases.

Prepare the journal entries to record the above three security purchases.

Prepare the journal entry for the security sale on May 20.

Compute the unrealized gains or losses.

Prepare the adjusting entries for Monty on December 31, 2017.

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!
Become a Member

Other questions asked by students

Q

Note: This problem is for the 2018 tax year. Lance H. and Wanda B. Dean are married...

Accounting
Q

A very long conductive tube has inner radius a and outer radius b. It carries charge...

Physics
Q

Introduction Researchers believe that one of the earliest branches in the phylogeny of the animal...

Biology
Q

What is the sum of the measures of the interior angles of a 12 gon...

Geometry
Q

22 20 18 16 144 12 10 8 09 6 4 N 0 1 2...

Basic Math
Q

Which of the following expressions represents the verbal description below?the square of the sum of...

Basic Math
Q

Find the sine and cosine of the angle 0 sin 0 cos 0 0 y...

Calculus
Q

Lucia Company has set the following standard cost per unit for...

Accounting
Q

Exercise 8-4A (Algo) Determining sales and variable cost volume variances LO 8-3 Jordan Manufacturing...

Accounting
Q

Monthly deposits are made into an account paying 6.8% nominal interest compounded monthly. If the...

Accounting
Q

please help part a5 Vice President for Sales and...

Accounting
Q

Interurban Company began operations on the first day of the year. On that day they...

Accounting