Menlo Company often invests in the debt and equity securities of other companies as short- term investments.
Question:
Menlo Company often invests in the debt and equity securities of other companies as short- term investments. During 2003, the following events occurred: July 1 Menlo purchased the securities listed here:
Sep. 30 Menlo received a cash dividend of $1,500 on Security 2. Dec, hi Menlo sold Security 4 for $14,800. 31 Menlo received interest of $2,600 on Security 1. 1 The market prices were quoted as follows: Security 1, $25,600; Security 2, $28,800; Security 3, $45,000. _ Prepare journal entries to record the events. 2. Illustrate how these investments would be reported on the balance sheet at December 31. 3. What items and amounts would be reported on the income statement for the year?
Step by Step Answer:
Financial Accounting
ISBN: 9780324066708
8th Edition
Authors: W. Steven Albrecht, James D. Stice, Earl Kay Stice, K. Fred Skousen, Albrecht S.E.