An investor purchased stock on Sept 30th of the current year. When is the first day that this is considered a Long Term Investment? A. Sept 30 of the following year B. Sept 31 of the following year C. Oct 1 of the following year D. Oct 2 of the folllowing year
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- At what amount should the following trading investment portfolio be reported on the December 31? balance sheet? All the investments are less than 5 percent of the investee's stock and were purchased late in the current year. Investment Current Stock Cost Market Value ------------------------------------------------------------------------- Eastman Kodak........... $ 5,000 $ 5,500 Exxon................... 61,200 53,000 General Motors.......... 3,680 6,230 The Amounts of the investments on the Balance Sheet is A) $59,222 B) 64,730Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.Treasury Stock Transactions Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share. a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank. Feb. 11 Treasury Stock Cash Apr. 30 Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Aug. 22 Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock
- You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year. Portfolio Year-End Statement Investment Number Dividend Price—Jan. 1 Price—Dec. 31 FernRod Corp. 400 shares $.30 $38.38 $45.75 Crown Realty, Inc. 500 shares 0 $74.50 $70.13 Sterling Mines 200 shares $.24 $27.88 $29.25 SJB Enterprises 300 shares $3.00 $68.75 $64.63 GTech 7.125% 16 20 bonds $98.50 $101.38 Comet 9.875% 17 10 bonds $103.88 $100.75 Calculate how much profit or loss you made for the year, including stock dividends and bond interest. What was the total return on investment for your portfolio? Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices? What would be the return on investment?Investment in Trading Securities The following information relates to Sanders Companys investment in trading securities for 2019: Required: 1. Prepare journal entries to record the previous information for 2019. Use the effective interest method and round all amounts to the nearest dollar. Assume that Sanders prepares semiannual financial statement. 2. Show the items of income or loss from investment transactions that Sanders reports for each 2019 semiannual income statement. 3. Show how the investment items are reported on each of the 2019 semiannual balance sheets, assuming that management expects to dispose of all investments within one year of purchase.Adjusting the Allowance to Adjust Trading Securities to Market Caesar Corporation has the following information for its portfolio of trading securities at the end of the past 4 years: Required: 1. Prepare the journal entries, if necessary, to adjust the allowance account at the end of 2018, 2019, Lind 2020. 2. CONCEPTUAL CONNECTION What is the income statement effect of the 2020 entry? 3. CONCEPTUAL CONNECTION How would your answer to Requirement 2 change if this was an available-for-sale portfolio?
- Investments in Equity Securities Manson Incorporated reported investments in equity securities of 60,495 as a current asset on its December 31, 2018, balance sheet. An analysis of Mansons investments on December 31, 2018, reveals the following: During 2019, the following transactions related to Mansons investments occurred: Required: 1. Assuming Manson prepares quarterly financial statements, prepare journal entries to record the preceding information. 2. Show the items of income or loss from investment transactions that Manson reports for each quarter of 2019. 3. Show how Mansons investments are reported on the balance sheet on March 31, 2019; June 30, 2019; September 30, 2019; and December 31, 2019.Yasmeen purchases stock on January 30,2018 . If she wishes to achieve a long-term holding period, what is the first date that she can sell the stock as a long-term gain? January 20,2019 January 31,2019 February 1,2019 July 31,2018 July 30,2018Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year:
- Calculate the Capital Gain/Loss on 100 shares of the stock Price on September 13th: 211.35 Price on November 24th:207.52 Use the Price on Sep 13th as the purchase price and the Price on November 24th as the sale price. Capital Gain: _______________________________ Percent Return: ___________________________Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Percent Change Year 1 2 3 4 5 6 7 8 Stock Value $80.00 92.00 107.00 128.00 145.00 250.00 400.00 670.00 % V b. Calculate the percentage change in the value of the stock across the entire 8-year period. c. Do you think this qualifies as a bubble? & % 4 V N % O Yes, because the percentage change in the stock value is positive every year. O No, because the percentage change in the stock value has not increased. O Yes, because the percentage change in the stock value has increased greatly. O No, because the percentage change in the stock value fluctuates up and down across the 8 years.26. The following form part of shareholder’s equity, except Group of answer choices a. Treasury shares b. Conversion option c. Retained earnings d. Subscription receivable collectible within twelve months after the end of reporting period
