General Corporation has the following investments in equity securities at December 31, 1999 (there are no existing balances in the market adjustment account):

Required: 1. Prepare any adjusting entries required at December 31, 1999.
2. Illustrate how these investments would be presented on General Corporation's balance sheet at December 31, 1999. The available-for-sale securities are expected to be held for two to five years 3. Prepare the journal entry on April 10,2000, when General Corporation sold the Clarke Corporation investment for $\$ 72$ per share 4. Assume that General Corporation still owns its investment in Marlin Company and Air Products at December 31, 2000; the market prices are $\$ 37$ for Marlin and $\$ 44$ for Air Products on that date. Prepare all adjusting journal entries needed at December 31, 2000 .

Transcribed Image Text:

Percentage of Shares Market Price Company Classification Shares Owned Cost at 12/31/99 Clarke Corporation Trading 1,000 2% $75 Marlin Company Available-for-sale 4,000 15 34 $78 32 Air Products, Inc. Available-for-sale 3,000 10 46 43