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The below transactions concerns Ford Company for the year 2012: On May31 st ,2012, Ford company purchased a long-term investment related to Motro Companyfor $12
The below transactions concerns Ford Company for the year 2012:
- On May31st,2012, Ford company purchased a long-term investment related to Motro Companyfor $12 millionas trading securities, of 8% quoted bonds. On the same date the business acquired $15million of Cora Company shares as available-for sale security and purchased Treasury bonds for $3 million, from Samsuc Company hoping to generate profit in short period of time.
- On November 15th, 2012, Ford company sold the Samsuc Treasury bonds for $4 million.
- On December 31st, 2012, record the necessary adjusting entry(s) and closing entries related to the investments. The market prices of the investments are:
Motro Company $11.5 million
Cora Company $16 million
Samsuc Company $5 million
Required:
- Record transaction number (3) presenting the necessary adjusting entries.
- Indicate any amounts that Ford would report in its 2012 statement of financial position and income statement as result of these investments.
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