Question - Stewart Corporation's balance sheet at December 31, 2013, showed the following:
Short-term investments, at fair value $46,500
Stewart Corporation's trading portfolio of stock investments consisted of the following at December 31, 2013:
Conn Common Stock: 200 shares cost $28,000
Ares Preferred Stock: 400 shares cost $6,000
Hall Common Stock: 300 shares cost $9,000
During 2014, the following transactions took place:
Feb. 5 Sold 100 shares of Conn common stock for $18,000... Mar. 30 Purchased 25 shares of Hall common stock for $1,000... Sept. 9 Purchased 50 shares of Hall common stock for $3,000.
At year end on December 31, 2014, the fair values per share were:
Conn common stock $158
Ares preferred stock $14
Hall common stock $24
A) Prepare the journal entries to record the 2014 stock transactions for feb5, mar30, sept9.
B) On December 31, 2014, show adjusting entry that might be necessary relative to the trading portfolio.
C) Show how the stock investments will appear on Stewart Corporation's balance sheet at December 31, 2014.