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Journal Entries - Available for sale securities

P3-13A The following securities are in Hi-Tech Company's portfolio of long-term availablefor-sale securities at December 31, 2002.

COST
52,000 1,000 Shares of Awixa Corpporation common stock
84,000 1,400 shares of Hal Corporation common stock
33,600 800 shares of Renda Corporation Preferred Stock

On December 31, 2002, the total cost of the portfolio equaled total fair value. Hi-Tech had the following transactions related to the securities during 2003.

Jan. 20 Sold 1,000 shares of Awixa Corporation common stock at $56 per share less brokerage fees of $600.

28 Purchased 400 shares of $70 par value common stock of Mintor Corporation at $78 per share, plus brokerage fees of $480.

30 Received a cash dividend of $1.15 per share on HAL Corp. common stock.

Feb. 8 Received cash dividends of $0.40 per share on Renda Corp. preferred stock

18 Sold all 800 shares of Renda Corp. preferred stock at $30.00 per share less brokerage fees of $360.

30-Jul Received a cash dividend of $1.00 per share on HAL Corp. common

Sept. 6 Purchased an additional 800 shares of $10 par value common stock of Mintor Corporation at $82 per share, plus brokerage fees of $800.

Dec. 1 Received a cash dividend of $1.50 per share on Mintor Corporation common stock.

At December 31, 2003, the fair values of the securities were:

$64 per share HAL Corporation common stock
$72 per Share Mintor Corporation Sommon Stock

Hi-Tech Company uses separate account titles for each investment, such as "Investment in HAL Corporation Common Stock."

Instructions
(a) Prepare journal entries to record the transactions.
(b) Post to the investment accounts. (Use T accounts.)
(c) Prepare the adjusting entry at December 31, 2003, to report the portfolio at fair value.
(d) Show the balance sheet presentation at December 31, 2003.

I am in major need of help with the journal entires. My test is not understandable, and my instructor is not responding to my emails. I would greatly apprecite any help! Thank you!!!

Solution Preview

The details are in the attached file.
1. The journal entries are made.
2. The entries are posted to the investment T Accounts
3. The ...

Solution Summary

The solution has journal entries for sale and purchase of available for sale securities

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