Perry company had no short-term investment prior to year 2011.it had the following transactions involving short-term investment in available for-sale…

Perry company had no short-term investment prior to year 2011.it had the following transactions involving short-term investment in available for-sale securities during 2011.April 16 purchased 8,000 shares of Gem Co. stock at $24.25 per share plus a $360 brokerage fee.May 1 paid $200,000 to buy 90-day U.S treasury bills 9 (debt securities); $200,000 principle amount 6% interest securities dated may 1July 7 purchased 4,000 shares of Pepsi Co stock at $49.25 share plus a $350 brokerage fee.20 purchased 2,000 share of Xerox stock at $16.75 per share plus $ 410 brokerage fee.Aug.3 received a check for principle and accrued interest on the US. Treasury bills that matured on July 2915 received an 0.85 per share cash dividend on the Gem Co. stock.28 solid 4,000 shares of Gem Co. stock at $ 30 per share less a $450 brokerage fee.Oct.1 received a $ 1.90 per share cash dividend on the PepsiCo sharesDec. 15 received a $ 1.05 per share cash dividend on the remaining Gem Co shares.Dec 31 received a $1.30 per share cash dividend on the PepsiCo shares.Required1. Prepare journal entries to record the preceding transactions and events.2. Prepare a table to compare the year –end cost and fair values of Perry’s short-term investment in available-for sale securities. The year-end fair values per shares are Gem Co, $ 26.50 PepsiCo, $ 46.50 and Xerox, $ 13.753. prepare an adjusting entry, if necessary, to record the year-end fair values adjusting for the portfolio of short-term investment in available –for-sale securities.Analysis Component4. Explain the balance sheet presentation of the fair value adjustment for Perry’s short-term investment.5. How do these short-term investment affect Perry’s (a)income statement for year 2011(b) the equity section of its balance sheet at year-end 2011?

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more