Ardmore Investments purchased Columbia Corporation shares on December 16 for $110,000. Ardmore plans on holding the securities
Question:
Ardmore Investments purchased Columbia Corporation shares on December 16 for $110,000. Ardmore plans on holding the securities a few months. Ardmore owns less than 2% of the outstanding shares of Columbia.
1. Suppose the Columbia shares decreased in value to $88,000 at December 31. Make the Ardmore journal entry to adjust the Investment in Equity Securities account to fair value.
2. Show how Ardmore would report the Investment in Equity Securities account on its balance sheet and the unrealized gain or loss on its income statement.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...
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Related Book For 
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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