Question : 175.On November 19, 20×7, Lassen Company purchased 30,000 shares of : 1244292

 

175.On November 19, 20×7, Lassen Company purchased 30,000 shares of JCN Corporation stock for $480,000, and 10,000 shares of Canoga Corporation stock for $250,000. Lassen’s management intends to hold all 40,000 shares for a short period of time. On December 31, 20×7, the price of JCN’s stock was $13 per share, and the price of the Canoga stock was $30 per share. Finally, on January 27, 20×8, Lassen sold all 10,000 shares of Canoga stock for $320,000. In the journal provided below, prepare Lassen’s entries for November 19, December 31, and January 27.

 

General Journal

Page 1

Date

Description

Post.

Ref.

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

176.Using the journal provided, prepare entries for the following transactions of LaPana Corporation for 20×7 and 20×8. Please provide all explanations.

 

20×7

 

 

Aug.

13

 

Purchased 1,000 shares of Casper Corporation stock for $30,000. These securities were purchased primarily for trading purposes.

Oct.

5

 

Purchased 4,000 shares of Tally Corporation stock for $68,000. These securities were purchased primarily for trading purposes.

Nov.

1

 

Invested $98,000 in 120-day U.S. Treasury bills that have a maturity value of $100,000.

Dec.

31

 

The market value of the Casper Corporation shares is $31,000, and the market value of the Tally Corporation stock is $63,000. A year-end adjustment is made.

 

31

 

A year-end adjustment is made for accrued interest on the Treasury bills.

 

 

 

 

20×8

 

 

Mar.

1

 

Received maturity value of U.S. Treasury bills in cash.

Apr.

14

 

Sold all 1,000 shares of Casper Corporation stock for $30,800.

Sept.

22

 

Received dividends of $1 per share from Tally Corporation.

Dec.

31

 

The market value of the Tally Corporation shares is $70,000. A year-end adjustment is made.

 

 

 

 

 

 

 

 

 

General Journal

Page 1

Date

Description

Post.

Ref.

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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