Question

On March 31, Year 1, Bros purchased 10,000 shares of stock A for $8 a share and 3,000 shares of stock B for $4 a share. On June 30, Year L the company also purchased 5,000 shares of stock C for $6 a share. The company plans to actively buy and sell stock B. Stocks A and C are being saved to pay for future expansion. will not sell stocks A or C unless the sales price goes too high to pass up the opportunity. Make journal entries to record the purchases on March 31st and June 30th of Year 1. (A 26) on December 31, Year 1, stock A is selling for $6, stock B is selling for $8 and stock C is selling for $7. Make the appropriate journal entries (if any) to record the change in value. Ignore the effects of taxes. (A 21) on December 31, Year 2, stock A is selling for $7, stock B is selling for $6 and stock C is selling for $9. Make the appropriate journal entries (if any) to record the change in value. Ignore the effects of taxes. (A 27) On February’ 15 Year 3 stock B is selling at $5.50/share. Record the sale of 3/4 of the investment in stock B. Ignore the effects of taxes. (A 26)