Grafton Company Had the Following Transactions Pertaining to Its Short-Term

question 146

Essay

Grafton Company had the following transactions pertaining to its short-term stock investments.
Jan. 1 Purchased 2,000 shares of Hortez Company stock for $101,100 cash.
June 1 Received cash dividends of $2.70 per share on the Hortez Company stock.
Sept. 15 Sold 1,000 shares of the Hortez Company stock for $49,600.
Dec. 31 The fair values of the securities were $50,800. Prepare the adjusting entry to report the portfolio at fair value.
Instructions
(a) Journalize the transactions.
(b) Indicate the income statement effects of the transactions.

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Definitions:

Developmental Psychology

A branch of psychology that studies how people grow and change throughout the life span, from infancy to old age.

Elderly

Individuals who are significantly beyond the average age of the adult population, often considered as those who are 65 years or older.

Developmental Psychologist

A professional specializing in understanding and explaining how and why human beings change over the course of their lives.

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A household in which one parent is responsible for the care and upbringing of the children due to various reasons such as divorce, death, or single choice.