Long term investment
Not what you're looking for?
E 12-6
On February 18, 2011, Union Corporation purchased 10,000 shares of IBM common stock as a long-term investment at $60 per share. On December 31, 2011, and December 31, 2012, the market value of IBM stock is $58 and $61 per share, respectively.
Required:
1.What is the appropriate reporting category for this investment? Why?
2.Prepare the adjusting entry for December 31, 2011.
3.Prepare the adjusting entry for December 31, 2012.
Purchase this Solution
Solution Summary
The solution explains how to record the long term investment and prepare the adjusting entry
Solution Preview
1.What is the appropriate reporting category for this investment? Why?
Since the stock is purchased as a long term investment, it would be reported as an available for sale security
2.Prepare the adjusting entry for ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Basics of corporate finance
These questions will test you on your knowledge of finance.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.