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?).
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
