Question
ON NOVEMBER 10, 2018, MOSELLE CORP INVESTED $900,000 OF ITS CASH RESERVES EQUALLY IN THREE MARKETABLE SECURITIES. PENDIX NOTES $300,000 LIMPID SHARES $300,000 CLAMMY NOTES
ON NOVEMBER 10, 2018, MOSELLE CORP INVESTED $900,000 OF ITS CASH RESERVES EQUALLY IN THREE MARKETABLE SECURITIES.
PENDIX NOTES $300,000
LIMPID SHARES $300,000
CLAMMY NOTES $300,000
ONLY THE PENDIX NOTES WERE DESIGNATED TRADING SECURITIES.
ON DECEMBER 31, 2018, THE SECURITES FAIR VALUES WERE AS FOLLOWS:
PENDIX $270,000
LIMPID $280,000
CLAMMY $320,000
Present appropriate journal entries to account for the securities on December 31, 2018
ON APRIL 15, 2019, MOSELLE SOLD 10% OF ITS HOLDINGS OF EACH SECURITY FOR THE FOLLOWING AMOUNTS:
PENDIX $26,000
LIMPID $31,000
CLAMMY $31,000
Present appropriate journal entries to account for the securities on APRIL 15, 2019
ON DECEMBER 31, 2019, THE SECURITES FAIR VALUES WERE AS FOLLOWS:
PENDIX $250,000
LIMPID $250,000
CLAMMY $250,000
Present appropriate journal entries to account for the securities on December 31, 2019
Present the effects of the securities on the 2018 income statement.
Present the effects of the securities on the 2019 income statement.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost And Management Audit
Authors: Dr Veena Soni
1st Edition
6202551992, 978-6202551991
