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.

Distinguish between different types of third-party beneficiaries.

Understand the legal effects and requirements for assignments and delegations.

Identify situations where third-party beneficiaries cannot enforce agreements.

Explain the impact of assignment and delegation on the involved parties' rights and responsibilities.

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Definitions:

Supply-Side Market Failures

Situations where the production or supply side of the market does not efficiently allocate resources due to externalities or other market imperfections.

Costs

The expenses involved in manufacturing a product or providing a service.

Benefits

Advantages or positive outcomes that result from a particular action or policy.

Cap-And-Trade

An environmental policy tool that sets a limit on emissions and allows companies to trade allowances for emissions as a way to reduce pollutants.