On June 30, 2016, MetroMedia Unlimited purchased 10,000 shares of Mitekii for $20 per share. The following

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On June 30, 2016, MetroMedia Unlimited purchased 10,000 shares of Mitekii for $20 per share. The following information pertains to the price per share of Mitekii shares:

                                          Price
12/31/2016........................$24
12/31/2017..........................31


Required:

1. Assume that the shares are traded on an open market. Prepare the journal entries required on each date given.

2. Show how the investment and gains would be reported at the end of 2017 and 2016 on the classified balance sheet and income statement.

Balance Sheet
Balance 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...
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Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259269868

5th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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