Instructions During January 2020, Long Corporation for the first time decided to acquire some equity securities as a means of putting some of its idle cash to work. The securities are classified as trading securities. At March 31, when Long prepares its first quart financial statements, the following information about the acquired securities is available: Securities Cost Market $52,000 $50,000 32,000 29,000 35,000 27,000 Required: a. Prepare the joumal entries to record the acquisition in January and valuation at the end of the first quarter of 2020. b. Assume that on June 30, 2020, the company still has this same portfolio The market value of 1 is $57,000, 2 is $30,000 and 3 is $31,000. What journal entry, if any should be prepared at the end of the second quarter? . On August 15, 2020, Long Corporation sold Security 3 for $33,000. Prepare the journal entry to record this transaction.
Instructions During January 2020, Long Corporation for the first time decided to acquire some equity securities as a means of putting some of its idle cash to work. The securities are classified as trading securities. At March 31, when Long prepares its first quart financial statements, the following information about the acquired securities is available: Securities Cost Market $52,000 $50,000 32,000 29,000 35,000 27,000 Required: a. Prepare the joumal entries to record the acquisition in January and valuation at the end of the first quarter of 2020. b. Assume that on June 30, 2020, the company still has this same portfolio The market value of 1 is $57,000, 2 is $30,000 and 3 is $31,000. What journal entry, if any should be prepared at the end of the second quarter? . On August 15, 2020, Long Corporation sold Security 3 for $33,000. Prepare the journal entry to record this transaction.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 9E
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