Prepare General Journal Entries for the Following Transactions Involving Short-Term

question 9

Essay

Prepare general journal entries for the following transactions involving short-term securities (assume no investments were held prior to the following transactions):
(a)Feb 16: Purchased 500 City Corp shares at $35 per share.Commission was $30.
(b)Feb 26: Purchased 800 Southside Corp shares at $25 per share,no commission.
(c)Mar 2: Received a $4 per share dividend on the City Corp shares.
(d)Mar 28: Sold 150 shares of City Corp at $40 per share.
(e)April 20: Sold 250 shares of Southside Corp at $20 per share.
(f)April 30: End of the quarter.The company is preparing quarterly statements.Fair values for securities are as follows: City Corp $42 per share,and Southside Corp $21 per share.

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Definitions:

Malicious Prosecution

A tort in which one person wrongfully subjects another to criminal or civil litigation for the sole purpose of causing problems for that other person, often in retaliation for previous litigation between the two.

Wrongful Civil Proceedings

Wrongful civil proceedings involve initiating legal action against someone without proper grounds or with an improper motive, potentially leading to a claim for abuse of the legal process.

Abuse of Process

Abuse of process refers to the misuse of legal procedures for malicious purposes or to harm another, rather than to achieve a legitimate legal outcome.

Public Figure Privilege

A special right, immunity, or permission that allows people to make any statement about public figures, typically politicians and entertainers, without being held liable for defamation as long as false statements were not made with malice.