how would you recommend that the remaining shares be classified in the 2010 december 626040
Kress, Inc., purchased on 2010 July 2, 240 shares of Baker Company USD 180 par value common stock as a temporary investment at USD 288 per share, plus a broker”s commission of USD 432. On 2010 July 15, a cash dividend of USD 7.20 per share was received. On 2010 September 1, Baker Company split its USD 180 par value common shares two for one. On 2010 November 2, Kress sold 200 shares of Baker common stock at USD 180, less a broker”s commission of USD 288.
a. Prepare journal entries to record all of the above transactions.
b. How would you recommend that the remaining shares be classified in the 2010 December 31, balance sheet if still held at that date?
c. Assume the remaining shares were considered current assets classified as trading securities at the end of 2010, at which time their market value was USD 128 per share. Prepare any necessary adjusting entries for the end of 2010.