Exercises

1. On 2/13/CY to settle 2/16/CY, we bought

1500 shares of Ford MotorCorp at a price of
$48 per share with a commission of $45. Calculate the net amount for the trade and
write out the appropriate accounting entries.
Net Amount:

Journal Entries:

2. On 3/11/CY to settle 3/14/CY, we sold 4000 shares of Diamond Shares Trust at a price
of $122.00 per share, with a $60 commission and SEC fees of $12.55. Calculate the net
amount for the trade and make the appropriate accounting entries. Assume an original
cost of $480,000
Net Amount:

Journal Entries:

3. On 3/18/CY to settle 3/21/CY, we purchased 5000 shares of Cardno Limited at a price of

6.00 AUD per share with an exchange rate of I .0347. On settle date the exchange rate
was 1.0412. Please make the appropriateaccounting entries for T+l and T+3.

Journal Entries:

4. On 2/20/CY to settle 2/23/CY, we purchased 2,000,000 shares of Goldman Sachs

Capital Adjustable Rate Bond at a price of $80 per share. The bond has monthly
coupon payments on the 1stwith a current adjustable rate of 4%. Please make the
appropriate accounting entries.

Journal Entries:

5. On a Tuesday when reviewing XYZ fund you notice that the expenses seem to be
posting higher than normal. Upon completion of the expense cap worksheet it is
discovered that the expenses are over the cap by $500. Please state whether a journal
entry needs to be made and what the given entry would be if necessary.

Journal Entries:

6. On a Tuesday when reviewing XYZ fund you notice that the expenses seem to be
posting lower than normal. Upon completion of the expense cap worksheet it is
discovered that the expenses are under the cap by $500. Please state whether a journal
entry needs to be made and what the given entry would be if necessary.

Journal Entries:

7. A dividend is caught during late pricing for TUVWX fund. Ex date and pay date are
current day with an income rate of $0.035. The fund holds 425,346 shares of TUVWX
fund. What reports need to be re-processed? Please make the appropriate accounting
entries.
Reports:

Journal Entries:

8. Your fund holds 15 call options with a multiplierof 100 and a strike price of 25.
What will the fund do it the options are exercised?

9. During pricing (T+0) your fund closes a future contract for a gain of $100 with a
commission of $10. What steps need to be taken to processes the gain and
commission in PAM on T+l?

10. Complete the following chart:

Account

Natural Balance

Asset

Liability
Income

Expense
Capital

11. Calculate the NAV given the following information:

Common Stock Cost
Common Stock Appr/ Depr
Option Cost (Short Position)
Option Appr/ Depr
Receivable for Dividends
Payable for Securities Purchased

Expenses Payable
Dividend Income
Realized Gain / Loss

Shares Outstanding

$48, 156,259.25
($2,569, 105)

$512,968
$98,025.98
$500.25
$800,597.85
$117,597.25
$589,654.75
($802,596.78)