Barzetti Had No Investments Prior to the Current Year

question 163

Essay

Barzetti had no investments prior to the current year.It had the following transactions involving available-for-sale and held-to-maturity securities during the year.The stock purchases are considered short-term,non-influential securities.Prepare Barzetti's journal entries to record the transactions and events associated with the investment purchases.
Apr.18 Purchased 5,000 shares of Lacy Co.stock at $26.50 per share plus a $350 brokerage fee.
May 01 Purchased $200,000 of Butcher's 7%,two-year bonds payable at par value.Interest payments are paid semiannually on November 1 and May 1.It is the company's intent to hold the bonds until maturity.
Jun.10 Purchased 4,000 shares of SubCo stock at $48.25 plus a $325 brokerage fee.
Nov.01 Received a check for the first semiannual interest payment on the Butcher's bonds.
Nov.15 Received a $0.65 per share cash dividend on the Lacy Co.shares.
Nov.30 Sold 2,000 shares of Lacy Co.stock at $29 less a $300 brokerage fee.
Dec.15 Received a $1.10 per share cash dividend on the SubCo shares.
Dec.20 Received a $.075 per share cash dividend on the remaining Lacy Co.shares.
Dec.31 Prepare an adjusting entry to record the fair value adjustment on the equity securities.At December 31,the Lacy Co.stock has a fair value of $28 per share,and the SubCo stock has a fair value of $49.50 per share.

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Definitions:

North America

A continent located in the Northern Hemisphere and almost entirely within the Western Hemisphere.

Team-Based Organizations

Organizational structures that prioritize and rely on teams rather than traditional hierarchical models to accomplish tasks and goals.

High Degree of Autonomy

A work condition where employees have significant control and discretion over how they perform their tasks.

Work Processes

The series of activities and tasks that are carried out in order to achieve a specific outcome within an organization.