Mire Corporation Had the Following Transactions Involving Investments in Trading

question 62

Essay

Mire Corporation had the following transactions involving investments in trading securities during the year. Prior to these transactions, Mire had never had any investments in trading securities. Prepare the required general journal entries to record these transactions.
Feb. 16 Purchased 800 shares of HM Corporation stock at $28 per share plus a $400 brokerage fee.
Feb. 26 Purchased 500 shares of Sugarland Co. stock at $19 per share plus a $300 brokerage fee.
Mar. 2 Received a $0.95 per share dividend from the HM Corporation.
Mar. 28 Sold 200 shares of HM Corporation stock for $31 per share less a $150 brokerage fee.
Apr. 20 Sold 150 shares of Sugarland Co. stock at $17 per share less a $100 brokerage fee.
Apr. 30 The company is preparing quarterly financial statements; prepare an adjusting entry for the fair value adjustment on the trading securities. At April 30, the HM stock has a fair value of $30 per share, and the Sugarland stock has a fair value of
$16 per share.

---

Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or by applying the cost flow assumption.

Specific Invoice Method

A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.

High-Cost Goods

High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.

Sales Production

The process or activity of generating goods and services to meet consumer demand and generate revenue.