Service

Chat Now

Short term investment purchases are recorded at their cost. 12) Investments held by a cor

Short term investment purchases are recorded at their cost. 12) Investments held by a cor

Short term investment purchases are recorded at their cost.

12) Investments held by a corporation are always classified as current assets.

13) Accounting for a short term investment is the same as accounting for a note receivable.

14) What are 'trading investments'?

15) Vance Corporation purchases UXB shares on May 10 for $120,000.  On October 15th Vance receives a cash dividend of $1,200 from UXB.  On December 31st the value of Vance Corporation's investment in UXB has increased in value to $150,000.

Prepare journal entries needed on May 10, October 15, and December 31, 2010

16) January 1, 2010 Orange Tree Spa invests in $100,000 worth of Apple Spa shares to hold as a short term investment.  On December 31, 2010, this investment now has a market value of $105,000. 

On May 1, 2011 Orange Tree Spa sells their Apple Spa shares for $95,000.  Prepare the required entries for Orange Tree Spa.

17) Olive Corporation purchases Branch Inc shares on June 21 for $220,000.  On October 1 Olive receives a cash dividend of $2,500 from Branch Inc.  On December 31st the value of Olive Corporation's investment in Branch has decreased in value to $210,000.

Tripti 07-Dec-2019

Answer (UnSolved)

question Get solution