with a format of this sheet LO 5 Alternate Problems On Septe

with a format of this.

sheet (LO. 5) Alternate Problems On September 1, 2012, Ramscy Company purchased the followin Problem 14-1A Prepare entries for available for-sale investments classified as available-for-sale securities: 9.20 plus broker\'s secunbes (L.o. I, 3) 01)1. Twothousand shares of Lacey Company capital stock at $439.20 plus commission of S5,760. 2. One thousand shares of Membrow Company capital stock at $705.60 pl commission of $5,040 Cash dividends of S18.00 per share on the Lacey capital stock and $14.40 per share m Membrow capital stock were received on December 7 and December 10, respectivel On December 31, 2012,per share market values are Lacey, $460.80, and Membro. $6553 Requieda. Prepare journal entries to record these transactions. b. Prepare the necessary adjusting entry(ies) at December 31, 2012, to adjust the caryng values assuming that market price changes are believed to be temporary. Where wold the accounts appear in the financial statements?

Solution

(a)

(b)

Working:

Date	Account Title	Debit	Credit
9/1/2012	Investment in Lacey Company	884160
	Cash		884160
	(Purchase of 2,000 shares of Lacey company )
	Investment in Memborw Company	710640
	Cash		710640
	(Purchase of 1,000 shares of Membrow Company)
12/7/2012	Cash	36000
	Dividend income		36000
	(Dividend received on Lacey Company shares)
12/10/2012	Cash	14400
	Dividend income		14400
	(Dividend received on Membrow Company shares)