woolford company has the following portfolio of available for sale securities at dec 492090
Woolford Company has the following portfolio of available for sale securities at Dec 31,2006.
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woolford company has the following portfolio of available for sale securities at dec 492090
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|
Security |
QTY |
Present |
Per Share Interest |
Cost |
Market |
|
Favre, Inc. |
2000 |
shares |
8% |
$11 |
$16 |
|
Brady Corp. |
5000 |
shares |
14% |
23 |
17 |
|
McNabb Co. |
4000 |
shares |
2% |
31 |
24 |
Instructions
a. What should be reported on Woolford’s Dec 31,2006, balance sheet relative to these long-term available for sale securities?
On December 31,2007, Woolfords portfolio of available for sale securites consisted of the following common stocks.
|
Security |
QTY |
Present |
Per share Interest |
Cost |
Market |
|
Brady Corp. |
5,000 |
shares |
14% |
$23 |
$30 |
|
McNabb Company |
4,000 |
shares |
2% |
31 |
23 |
|
Mc Nabb CO |
2,000 |
shares |
1% |
25 |
23 |
At the end of the year 2007, Woolford Company changed its intent relative to its investment in Favre, Inc. and reclassified the shares to trading securities status when the shares were selling for $9 per share.
b. What should be reported on the face of Woolford’s Dec 31,2007, balance sheet relative to available for sale securities investments?
c. What should be reported to reflect the transactions above in Woolford’s 2007 income statement
d. Assuming the comparative financial statements for 2006 and 2007 are presented, draft the footnote necessary for full disclosure if Woolford’s transactions and position in equity securities.
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