Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on august 10,2016, the green and grey company inve

On August 10,2016, the Green and Grey Company invest in equity securities costing $3,000,000 ...

60.1K

Verified Solution

Question

Accounting

On August 10,2016, the Green and Grey Company invest in equity securities costing $3,000,000
and classifies them as AFS investments. On September 30,2016, the value of the equity
securities falls to $2,910,000 and Green and Grey pay $100,000 for March 2017 put options with
a strike price of $3,000,000 as a fair value hedge of its equity investment. On December 31,
2016, the companys fiscal year end, the options have a fair value of $76,600 and the securities
have a fair value of $2,940,000. Green and Grey sells the options on March 1,2017 for $159,800
when the fair value of the securities is $2,850,000 and sells the securities for $2,900,000 on
March 30,2017.
Prepare the journal entries made by Green and Grey Company on
August 10,2016
September 30,2016
December 31,2016
March 1,2017
March 30,2017

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Preston Woods has 17,500 shares of stock outstanding along with $408,000 of interest-bearing debt. The market...

Medical Sciences
1.2K views

1. What is the total pressure inside the lungs when air is not moving into or...

Physics
1.2K views

Historical background for electricity and magnetism Explain what each of the following materials are and how...

Electrical Engineering
1.2K views

Using labview, convert an input decimal number to a 1-D array of 7 seg LED &...

Basic Math
1.2K views

A random sample of thirty-six 200-meter swims has a mean time of 3.009 minutes. The population...

Biology
1.2K views

Infection by the E coli turns on all T cells and B cells O all...

Physics
1.2K views

Example 1 11 The electric field components in Fig 1 27 are E x E...

Basic Math
1.2K views

Put the following equation in standard forin: x = 10y - 9If, in standard form,...

Statistics
1.2K views

point While taking a walk along the road where you live you accidentally drop your...

Statistics
1.2K views

The accompanying table gives amounts of arsenic in samples of brown rice from three different...

Calculus
1.2K views

1).Find the extremum of f(x,y) subject to the given constraint, and state whether it is...

Accounting
1.2K views

1: Using the trditional approach to assigning overhead costs to academic programs: Predetermined overhead rate:...