In the first year of operations, Acme Company had the following selected transactions in trading securities....

In the first year of operations, Acme Company had the following selected transactions in trading securities.

At December 31 the fair market values were $40 for Staples, Inc. and $30 for Ross, Inc.

Journalize the investment transactions and prepare the adjusting entry at Dec. 31

June 1: Purchased for cash 600 shares of Staples, Inc. common stock at $25 per share

July 1: Purchased for cash 800 shares of Ross Inc. common stock at $35 per share

Sept. 1: Received a $2 per share cash dividend from Ross, Inc.

Nov 1: Sold 200 shares of Staples, Inc. common stock for cash at $30 per share

Dec 15: Received a $1 per share cash dividend on Staples, Inc. common stock

Dec 31: Adjusting entry for unrealized gain or loss: (Fair values were $40 for Staples, Inc. and $30 for Ross, Inc)

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ekkarill92 answered 1 year ago

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