In: Accounting
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Grass Security, which began operations in 2017, invests in
long-term available-for-sale securities. Following is a series of
transactions and events determining its long-term investment
activity.
2017
Jan. | 20 | Purchased 2,600 shares of Johnson & Johnson at $22.10 per share plus a $400 commission. | ||
Feb. | 9 | Purchased 2,800 shares of Sony at $47.80 per share plus a $385 commission. | ||
June | 12 | Purchased 3,100 shares of Mattel at $28.60 per share plus a $355 commission. | ||
Dec. | 31 | Per share fair values for stocks in the portfolio are Johnson & Johnson, $23.10; Mattel, $32.50; and Sony, $39.60. |
2018
Apr. | 15 | Sold 2,600 shares of Johnson & Johnson at $25.10 per share less a $685 commission. | ||
July | 5 | Sold 3,100 shares of Mattel at $25.50 per share less a $395 commission. | ||
July | 22 | Purchased 2,200 shares of Sara Lee at $24.10 per share plus a $640 commission. | ||
Aug. | 19 | Purchased 2,500 shares of Eastman Kodak at $18.60 per share plus a $358 commission. | ||
Dec. | 31 | Per share fair values for stocks in the portfolio are: Kodak, $20.85; Sara Lee, $21.60; and Sony, $36.60. |
2019
Feb. | 27 | Purchased 4,000 shares of Microsoft at $68.60 per share plus a $685 commission. | ||
June | 21 | Sold 2,800 shares of Sony at $49.60 per share less a(n) $1,040 commission. | ||
June | 30 | Purchased 3,000 shares of Black & Decker at $37.60 per share plus a $595 commission. | ||
Aug. | 3 | Sold 2,200 shares of Sara Lee at $17.85 per share less a $595 commission. | ||
Nov. | 1 | Sold 2,500 shares of Eastman Kodak at $24.35 per share less a(n) $785 commission. | ||
Dec. | 31 | Per share fair values for stocks in the portfolio are: Black & Decker, $40.60; and Microsoft, $70.60. |
3. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Losses should be indicated by a minus sign. )
2017 | ||||||
particulars | Johnson & john son | Sony | Mattle | |||
qty | 2600 | 2800 | 3100 | |||
rate($) | 22.1 | 47.8 | 28.6 | |||
amount | 57,460.00 | 1,33,840.00 | 88,660.00 | |||
Commsion | 400.00 | 385 | 355 | |||
Total Investment | 57,860.00 | 1,34,225.00 | 89,015.00 | |||
Fair value (31 dec) | 23.10 | 32.5 | 39.6 | |||
Fair value(31 dec) (qty*fair rate) |
60,060.00 | 91,000.00 | 1,22,760.00 | |||
Unrealised Profit/Loss | 2,200.00 | (43,225.00) | 33,745.00 | |||
2018 | ||||||
particulars | Johnson & john son | Sony | Mattle | Sara Lee | Eastman kodak | |
qty | 2200 | 2500 | ||||
rate($) | 24.1 | 18.6 | ||||
amount | 53020 | 46500 | ||||
Commsion | 640 | 358 | ||||
Total Investment
Purchased /brought forward |
60,060.00 | 91,000.00 | 1,22,760.00 | 53660 | 46858 | |
Fair value (31 dec)/ actual sale price |
25.10 | 36.6 | 25.5 | 21.6 | 20.85 | |
Commission | 685 | 395 | ||||
Fair value(31 dec)/actual sale proceed | 64,575.00 | 1,02,480.00 | 78,655.00 | 47,520.00 | 52,125.00 | |
Unrealised Profit Loss / actual profit loss |
4,515.00 | 11,480.00 | (44,105.00) | (6,140.00) | 5,267.00 | |
(sold) | unrealised | (sold) | unrealised | unrealised | ||
2019 | ||||||
particulars | Microsoft | Sony | black and dacker | Sara Lee | Eastman kodak | |
qty | 4000 | 3000 | ||||
rate($) | 68.6 | 37.6 | ||||
amount | 274400 | 112800 | ||||
Commsion | 685.00 | 595 | ||||
Total Investment
Purchased /brought forward |
275085 | 1,02,480.00 | 113395 | 47,520.00 | 52,125.00 | |
Fair value (31 dec)/ actual sale price |
70.60 | 49.6 | 40.6 | 17.85 | 24.35 | |
Commission | 1040 | 595 | 785 | |||
Fair value(31 dec)/actual sale proceed | 2,82,400.00 | 1,37,840.00 | 1,21,800.00 | 38,675.00 | 60,090.00 | |
Unrealised Profit Loss / actual profit loss |
7,315.00 | 35,360.00 | 8,405.00 | (8,845.00) | 7,965.00 | |
unrealised | sold | unrealised | sold | sold |