Waterway Corporation made the following cash purchases of securities during 2020, which is the first...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Waterway Corporation made the following cash purchases of securities during 2020, which is the first year in which Waterway invested in securities. 1. On January 15 , purchased 10,800 shares of Sanchez Company common stock at $33.50 per share plus commission $2,144. 2. On April 1, purchased 5,400 shares of Vicario Co.'s common stock at $52 per share plus commission $3,634. 3. On September 10 , purchased 7,560 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $5,300. On May 20,2020, Waterway sold 4,212 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $4,158. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Waterway 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. tbook and Media
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!
