On January 31, 2016, McBurger Corporation purchased the following shares of voting common stock as long-term investments in available-for-sale securities. None of these holdings amounted to more than 5% of the respective company's outstanding voting shares. The accounting period ends December 31. All of the Bailey Corporation stock was sold for $13,500 on January 12, 2018.
Required:
Prepare the required journal entries at the following dates: January 31, 2016, December 31, 2016, December 31, 2017 and January 12, 2018.

Question

On January 31, 2016, McBurger Corporation purchased the following shares of voting common stock as long-term investments in available-for-sale securities. None of these holdings amounted to more than 5% of the respective company's outstanding voting shares. The accounting period ends December 31.  All of the Bailey Corporation stock was sold for $13,500 on January 12, 2018.
Required:
Prepare the required journal entries at the following dates: January 31, 2016, December 31, 2016, December 31, 2017 and January 12, 2018.

Quizplus · Accepted Answer

The Answer of On January 31, 2016, McBurger Corporation purchased the following shares of voting common stock as long-term investments in available-for-sale securities. None of these holdings amounted to more than 5% of the respective company's outstanding voting shares. The accounting period ends December 31.  All of the Bailey Corporation stock was sold for $13,500 on January 12, 2018.
Required:
Prepare the required journal entries at the following dates: January 31, 2016, December 31, 2016, December 31, 2017 and January 12, 2018.

On January 31, 2016, McBurger Corporation Purchased the Following Shares