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Using the information below, how do I record Chaz's investment transactions for January 6 through June...

Using the information below, how do I record Chaz's investment transactions for January 6 through June 30, 2019?

Chaz Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Chaz's portfolio of trading investments consisted of the following equity securities:

Security	Number of Shares	Cost per Share	Fair Value per Share
Benford Company	600	$66	$66
Gold Inc.	960	43	44
Demi Company	480	70	72

During the first half of 2019, Chaz engaged in the following investment transactions:

Jan. 6

Sold one-half of the Gold shares for $45 per share.

Feb. 3

Purchased 700 shares of Jackson Corporation common stock for $45 per share.

Mar. 31

Dividends of $2,500 were received on the investments, and the following information is available on market prices.

Security	Fair Value per Share
Benford Company	$65
Gold Inc.	45
Demi Company	70
Jackson Corporation	43

Apr. 14

Purchased 360 shares of Jordan Company preferred stock for $52 per share.

May 11

Sold the remainder of the Gold shares for $42 per share.

June 30

Dividends of $2,800 were received on investments, and the following information is available:

Security	Fair Value per Share
Benford Company	$68
Demi Company	69
Jackson Corporation	46
Jordan Company	50

Expert Solution

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Date	Particulars	Debit	Credit
6-Jan	Cash	$ 21,600.00
	Investment in AFS		$ 20,640.00
	Gain in sale of AFS		$ 960.00

6-Jan	Unrealized Holding Gain in Securities	$ 480.00
	Allowance for change in fair value investment		$ 480.00

3-Feb	Investment in AFS	$ 31,500.00
	Cash		$ 31,500.00

31-Mar	Cash	$ 2,500.00
	Dividend Income		$ 2,500.00

14-Apr	Investment in AFS	$ 18,720.00
	Cash		$ 18,720.00

11-May	Cash	$ 20,160.00
	Investment in AFS		$ 20,640.00
	Loss in sale of AFS	$ 480.00

11-May	Unrealized Holding Loss in Securities	$ 400.00
	Allowance for change in fair value investment		$ 400.00

30-Jun	Cash	$ 2,500.00
	Dividend Income		$ 2,500.00

ekkarill92 answered 1 year ago

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