On May 6, 2010, Galen Company purchased equity securities. At December 31, 2010, three investments were still owned by Galen. The names, cost, and fair values at December 31, 2010, are indicated below.
The investments have clearly determinable fair values. Galen can't exercise significant influence on any of these investments. Galen has determined that the Guy stock will be held until 2011. Galen intends to sell the Vernon stock by January 2, 2011, for short-term profits. Galen has no idea how long it will hold the Nordic stock. Show how these investments and any related yearend adjustments will be reported by completing the balance sheet below at December 31, 2010.
Balance Sheet at December 31, 2010:
Current Assets
Long-Term Investments
Shareholders' Equity

Question

On May 6, 2010, Galen Company purchased equity securities. At December 31, 2010, three investments were still owned by Galen. The names, cost, and fair values at December 31, 2010, are indicated below.
  The investments have clearly determinable fair values. Galen can't exercise significant influence on any of these investments. Galen has determined that the Guy stock will be held until 2011. Galen intends to sell the Vernon stock by January 2, 2011, for short-term profits. Galen has no idea how long it will hold the Nordic stock. Show how these investments and any related yearend adjustments will be reported by completing the balance sheet below at December 31, 2010.
Balance Sheet at December 31, 2010:
Current Assets
Long-Term Investments
Shareholders' Equity

Quizplus · Accepted Answer

The Answer of On May 6, 2010, Galen Company purchased equity securities. At December 31, 2010, three investments were still owned by Galen. The names, cost, and fair values at December 31, 2010, are indicated below.
  The investments have clearly determinable fair values. Galen can't exercise significant influence on any of these investments. Galen has determined that the Guy stock will be held until 2011. Galen intends to sell the Vernon stock by January 2, 2011, for short-term profits. Galen has no idea how long it will hold the Nordic stock. Show how these investments and any related yearend adjustments will be reported by completing the balance sheet below at December 31, 2010.
Balance Sheet at December 31, 2010:
Current Assets
Long-Term Investments
Shareholders' Equity

On May 6, 2010, Galen Company Purchased Equity Securities