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(b)
(c)
(d)
12-31-10
Unrealized Holding Gain or LossIncome...................................
Securities Fair Value Adjustment (Trading).......................
($337,000 $329,000)
3-1-11
Cash [(5,000 $31) $1,500]......................................................
Loss on Sale of Securities...............................................................
Trading Securities...............................................................
155,000
8,000
8,000
153,500
1,500
4-1-11
Trading Securities...........................................................................
Cash [(600 $45) + $550]................................................
27,550
12-31-11
Securities Fair Value Adjustment (Trading)...................................
Unrealized Holding Gain or LossIncome.......................
19,450
27,550
19,450
2) Pember Corporation started business in 2005 by issuing 200,000 shares of $20 par
common stock for $36 each. In 2010, 20,000 of these shares were purchased for $52 per
share by Pember Corporation and held as treasury stock. On June 15, 2011, these 20,000
shares were exchanged for a piece of property that had an assessed value of $810,000.
Perbers stock is actively traded and had a market price of $60 on June 15, 2011. The cost
method is used to account for treasury stock. The amount of paid-in capital from treasury
stock transactions resulting from the above events would be:
($60 $52) 20,000 = $160,000