Clarity Corporation Had the Following Transactions Involving Investments in Trading

question 56

Essay

Clarity Corporation had the following transactions involving investments in trading securities during the year.Prior to these transactions,Clarity never had any investments in trading securities.Prepare the required general journal entries to record these transactions.
$\begin{array}{|c|c|}\hline \text { Feb. } 16 & \begin{array}{l}\text { Purchased } 800 \text { shares of GN Corporation stock at } \$ 28 \text { per plus a } \$ 400 \\\text { brokerage fee }\end{array} \\\hline \text { Feb. } 26 & \begin{array}{l}\text { Purchased } 500 \text { shares of Honeyville Co. stock at } \$ 19 \text { per share plus a } \$ 300 \\\text { brokerage fee. }\end{array} \\\hline \text { Mar. } 2 & \text { Received a } \$ 0.95 \text { per share dividend from the GN Corporation. } \\\hline \text { Mar. } 28 & \begin{array}{l}\text { Sold } 200 \text { shares of GN Corporation stock for } \$ 31 \text { per share less a } \$ 150 \\\text { brokerage fee. }\end{array} \\\hline \text { Apr. } 20 & \begin{array}{l}\text { Sold } 150 \text { shares of Honeyville Co. stock at } \$ 17 \text { per share less a } \$ 100 \text { brokerage } \\\text { fee. }\end{array} \\\hline \text { Apr. } 30 & \begin{array}{l}\text { The company is preparing quarterly financial statements, so it must prepare an } \\\text { adjusting entry for the market adjustment on the trading securities. At April } 30 \text {, } \\\text { the GN stock has a market value of } \$ 30 \text { per share, and the Honeyville stock has } \\\text { a market value of } \$ 16 \text { per share. }\end{array} \\\hline\end{array}$

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Definitions:

War on Britain

is a broad term that could refer to various conflicts involving Britain, but without a specific context, it is too vague to accurately define.

War of 1812

A military conflict fought between the United States and Great Britain from 1812 to 1815, largely over issues of trade and impressment.

War of 1812

A conflict fought between the United States and the United Kingdom, along with their respective allies, from 1812 to 1815, primarily over issues of trade restrictions and American territorial expansion.

New England Merchants

Colonial and early American merchants located in the New England region, known for engaging in trade and commerce, including the Triangle Trade.