Accounting Problem

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Puevfgva0206

Business Finance

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6) During the fourth quarter of 2017, Alpha Company acquired the following trading securities: Date 10/15 10/25 10/31 Company Yankee Company X-ray Company Zulu Company # of Shares 1,000 1,000 1,000 Price Per Share $50 35 26 On November 10th, Alpha Company sold the X-ray Company stock for $31 per share. On December 24th, Zulu Company paid dividends of $.015 per share. The following were the year-end market values: Company Yankee Company X-ray Company Zulu Company FMV per share $60 15 20 What are the total dollar values that Alpha Company should record for the following: (Enter whole dollars only, for loss amounts enter the $ value inside of the brackets.) 1. Realized Gain/Loss during 2017 2. Unrealized Gain/Loss on Trading Securities for 2017 3. Dividend Income
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Question 6
Solutions
1. Realized Gain/ Loss Accounting Entries
The stock of X-ray Company was purchased at a cost of $35 per share and on the 10th of
November 2017, the stock was sold at a cost lower than the book value, $31. This resulted to a
realized loss of (35-31) *1000 = $40...


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