A company invests in stock of other companies for trading purposes. Its accounting year ends December 31. Its investment activity during 2019, 2020, and 2021 is as follows: a. Purchased stock of Acme Company in 2019 for $250,000 for the purpose of taking advantage of short-term volatility in the market place. . Sold the investment shortly after purchase for $235,000. E. Purchased stock of Beeber Company in 2019 for $300,000. 1. The investment had a fair value of $275,000 at the end of 2019. e. It was sold for $310,000 in late 2020. f. Purchased stock of Cromwell Company in 2019 for $500,000. g. Its fair value and the end of 2019 was $520,000. 1. Its fair value and the end of 2020 $460,000. i. The investment was sold for $480,000 in 2021. Prepare the entries necessary to report the above entries in either a T-account or spreadsheet format.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company invests in stock of other companies
for trading purposes. Its accounting year ends
December 31. Its investment activity during
2019, 2020, and 2021 is as follows:
a. Purchased stock of Acme Company in 2019 for
$250,000 for the purpose of taking advantage
of short-term volatility in the market place.
). Sold the investment shortly after purchase for
$235,000.
:. Purchased stock of Beeber Company in 2019
for $300,000.
1. The investment had a fair value of $275,000 at
the end of 2019.
e. It was sold for $310,000 in late 2020.
f. Purchased stock of Cromwell Company in 2019
for $500,000.
J. Its fair value and the end of 2019 was
$520,000.
1. Its fair value and the end of 2020 $460,000.
i. The investment was sold for $480,000 in 2021.
Prepare the entries necessary to report the
above entries in either a T-account or
spreadsheet format.
Transcribed Image Text:A company invests in stock of other companies for trading purposes. Its accounting year ends December 31. Its investment activity during 2019, 2020, and 2021 is as follows: a. Purchased stock of Acme Company in 2019 for $250,000 for the purpose of taking advantage of short-term volatility in the market place. ). Sold the investment shortly after purchase for $235,000. :. Purchased stock of Beeber Company in 2019 for $300,000. 1. The investment had a fair value of $275,000 at the end of 2019. e. It was sold for $310,000 in late 2020. f. Purchased stock of Cromwell Company in 2019 for $500,000. J. Its fair value and the end of 2019 was $520,000. 1. Its fair value and the end of 2020 $460,000. i. The investment was sold for $480,000 in 2021. Prepare the entries necessary to report the above entries in either a T-account or spreadsheet format.
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