Financial Statement, Balance Sheet, Sale securities
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Woolford company has the following portfolio of available for sale securities at December 31, 2006.
Security Quantity Percent Interest Cost Market
Favre, Inc. 2,000 shares 8% $11 $16
Brady corp. 5,000 shares 14% 23 17
McNabb Co. 4,000 share 2% 31 24
1st Question: What should be reported on Wolford's December 31, 2006, balance sheet relative to these long term available for sale securities?
On December 31, 2007 Wolfords portfolio of available for sale securities consisted of the following common stocks.
Per Share
Security Quantity Percent Interest Cost Market
Brady Corp 5,000 shares 14% $23 $30
McNabb Co 4,000 shares 2% 31 23
Mc Nabb CO 2,000 shares 1% 25 23
At the end of the year 2007, Woolford company changed its intent relative to its investment in Favre, Inc. and reclassified the shares to trading securities status when the shares were selling for $9 per share.
2nd Question: What should be reported on the face of Woolfords Dec 31, 2007 balance sheet relative to available for sale securities investments?
3rd Quesiton: What should be reported to reflect the transactions above in Woolford's 2007 income statement:
4th Question: Assuming that comparative financial statements for 2006 and 2007 are presented, draft the footnote necessary for full disclosure of Woolfords transactions and position in equity securities.
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Solution Summary
This solution assists in determining what should be reported on a balance sheet.
Education
- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
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