December 31 2011 Walden Owned Following Securities Held Long Term Investment Securities He Q17762462

On December 31, 2011, Walden owned the following securities thatare held as a long-term investment. The securities are not held forinfluence or control of the investee.
                                   CommonStock                      Shares                         Cost
                                   XCo.                                     2,000                          $90,000
                                   YCo.                                     5,000                          45,000
                                   ZCo.                                      1,500                          30,000
On this date, the total fair value of the securities was equalto its cost. In 2012, the following transactions occurred:
July     1          Received $1per share semiannual cash dividend on Y Co. Common Stock.
8 Received 4,000 shares of X Co. Common Stock in a 3 for 1 stocksplit.
Required
(a)  Journalize the twotransactions above. If no journal entry is required put N/A next tothe date.
July 1
July 8
(b) Assuming at December 31, 2011(Ignore 2012 activity) the fair values per share of the commonstocks were: X Co. $10, Y Co. $8, and Z Co. $5prepare the adjustingentry to show the securities at fair value assuming they areclassified as “available-for-sale securities”.
(c)   Indicate where anyunrealized gain/loss would be reported (Income Statement or BalanceSheet?).
 
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