Mumford Corporation invested $30,000 in marketable securities on December 4. On December 9, it sold some of

Question:

Mumford Corporation invested $30,000 in marketable securities on December 4. On December 9, it sold some of these investments for $10,000, and on December 18, it sold more of these investments for $5,000. The securities sold on December 9 had cost the company $7,000, whereas the securities sold on December 18 had cost the company $6,000.

a. Record the purchase of marketable securities on December 4.

b. Record the sale of marketable securities on December 9.

c. Record the sale of marketable securities on December 18.

d. Record the necessary fair value adjustment on December 31, assuming that the market value of the company’s remaining unsold securities was $20,000.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...