On March 1,2019,Young Company paid cash to purchase the following stocks as long-term investments:
Old Corporation common stock (par $5),2,000 shares at $5 per share (10% of outstanding shares)
ABC Corporation common stock (par $10),3,000 shares at $25 per share (15% of outstanding shares)
XYZ Corporation common stock (par $10),3,000 shares at $20 per share (10% of outstanding shares)
The market prices per share at December 31,end of the accounting period,were as follows:
Prepare the required journal entries at the following dates: March 1,2019,December 31,2019 and December 31,2020.

Question

On March 1,2019,Young Company paid cash to purchase the following stocks as long-term investments:
Old Corporation common stock (par $5),2,000 shares at $5 per share (10% of outstanding shares)
ABC Corporation common stock (par $10),3,000 shares at $25 per share (15% of outstanding shares)
XYZ Corporation common stock (par $10),3,000 shares at $20 per share (10% of outstanding shares)
The market prices per share at December 31,end of the accounting period,were as follows:
  Prepare the required journal entries at the following dates: March 1,2019,December 31,2019 and December 31,2020.

Quizplus · Accepted Answer

The Answer of On March 1,2019,Young Company paid cash to purchase the following stocks as long-term investments:
Old Corporation common stock (par $5),2,000 shares at $5 per share (10% of outstanding shares)
ABC Corporation common stock (par $10),3,000 shares at $25 per share (15% of outstanding shares)
XYZ Corporation common stock (par $10),3,000 shares at $20 per share (10% of outstanding shares)
The market prices per share at December 31,end of the accounting period,were as follows:
  Prepare the required journal entries at the following dates: March 1,2019,December 31,2019 and December 31,2020.

On March 1,2019,Young Company Paid Cash to Purchase the Following