Problem 1: Ryff Corporation's balance sheet at December 31, 2002, showed the following:
Short-term investments, at fair value $46,500
Ryff Corporation's trading portfolio of stock investments consisted of the following at December 31, 2002:
Stock Number of Shares Cost
Dixon Common Stock 200 $30,000
Boone Preferred Stock 400 6,000
Golic Common Stock 300 9,000
$45,000
During 2003, the following transactions took place:
Feb. 5 Sold 100 shares of Dixon common stock for $18,000.
Mar. 30 Purchased 25 shares of Golic common stock for $950.
Sept. 9 Purchased 75 shares of Golic common stock for $3,000.
At year end on December 31, 2003, the market values per share were:
Market Value Per Share
Dixon Common Stock $148.00
Boone Preferred Stock $ 14.00
Golic Common Stock $ 25.00
Instructions
Q1. Prepare the journal entries to record the 2003 stock transactions.
Q2. On December 31, 2003, prepare any adjusting entry that might be necessary relative to the trading portfolio.
Q3. Show how the stock investments will appear on Ryff Corporation's balance sheet at December 31, 2003.