The following information is related to the short-term passive investments of Solo Company. Securities held on December 31, 2016 are described in the table below.
$\begin{array}{|r|r|r|r|r|r|}
\hline\text { Securities } &\text { No. of }& \text { Cost/Share } &\text { Total } & \text { Value/Share } &\text { Total Market } \
&\text { Shares }&&\text { Cost }&&\text { Value }\
\hline\text { AAA } & 100 & \$ 29 & \$ 2,900 & \$ 34 & \$ 3,400 \
\hline \text { BBB } & 250 & 30 & 7,500 & 28 & 7,000 \
\hline \text { CCC } & 150 & 16 & 2,400 & 20 & 3,000 \
\hline&&&\$12,800&&\$13,400\
\hline
\end{array}$
Early in 2017, the company sold 50 shares of BBB for $26 per share.
The journal entry to record the sale in 2017 will include:

Question

The following information is related to the short-term passive investments of Solo Company. Securities held on December 31, 2016 are described in the table below.
$\begin{array}{|r|r|r|r|r|r|}
\hline\text { Securities } &\text { No. of }& \text { Cost/Share } &\text { Total } & \text { Value/Share } &\text { Total Market }  \
&\text { Shares }&&\text { Cost }&&\text { Value }\
\hline\text { AAA } & 100 & \$ 29 & \$ 2,900 & \$ 34 & \$ 3,400 \
\hline \text { BBB } & 250 & 30 & 7,500 & 28 & 7,000 \
\hline \text { CCC } & 150 & 16 & 2,400 & 20 & 3,000 \
\hline&&&\$12,800&&\$13,400\
\hline
\end{array}$
Early in 2017, the company sold 50 shares of BBB for $26 per share.
The journal entry to record the sale in 2017 will include:

Quizplus · Accepted Answer

The sale of 50 shares of BBB at $26 per share results in cash received of $1,300. The cost of these shares was $1,500 (50 shares x $30 cost/share). The difference of $200 is a loss, so the entry would include a credit to Short-term Equity Investments for $1,400 (50 shares x $28 market value/share), and a debit to Loss on Sale of Investments for $100.

The Following Information Is Related to the Short-Term Passive Investments