Available-for-Sale Securities On December 31, 2015, Marsh Company held 1,000 shares of Xenon Company common stock in its portfolio of available-for-sale securities. The stock had cost $15 per share and has a current market value of $13 per share. The December 31, 2015, balance sheet showed the following: Assets Investment in available-for-sale securities Less: Allowance for change in value of investment Shareholders' Equity Unrealized holding gain/loss $15,000 (2,000) $13,000 $ (2,000) During 2016, Marsh acquired 900 shares of Yellow Company common stock for $18 per share and 800 shares of Zebra Company common stock for $22 per share. At the end of 2016, the respective market values per share were: Xenon, $14; Yellow, $17; and Zebra, $20. Required: 1. Prepare the journal entries necessary to record the purchase of the investments in 2016 and the adjusting entry needed on December 31, 2016. 2. What would Marsh disclose on its December 31, 2016, balance sheet related to these investments?
Available-for-Sale Securities On December 31, 2015, Marsh Company held 1,000 shares of Xenon Company common stock in its portfolio of available-for-sale securities. The stock had cost $15 per share and has a current market value of $13 per share. The December 31, 2015, balance sheet showed the following: Assets Investment in available-for-sale securities Less: Allowance for change in value of investment Shareholders' Equity Unrealized holding gain/loss $15,000 (2,000) $13,000 $ (2,000) During 2016, Marsh acquired 900 shares of Yellow Company common stock for $18 per share and 800 shares of Zebra Company common stock for $22 per share. At the end of 2016, the respective market values per share were: Xenon, $14; Yellow, $17; and Zebra, $20. Required: 1. Prepare the journal entries necessary to record the purchase of the investments in 2016 and the adjusting entry needed on December 31, 2016. 2. What would Marsh disclose on its December 31, 2016, balance sheet related to these investments?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter13: Marketable Securities And Derivatives
Section: Chapter Questions
Problem 23P
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