On March 1, 2017, Young Company paid cash to purchase the following stocks as long-term investments in available-for-sale securities:
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: Required:
Prepare the required journal entries at the following dates: March 1, 2017, December 31, 2017 and December 31, 2018.

Question

On March 1, 2017, Young Company paid cash to purchase the following stocks as long-term investments in available-for-sale securities:
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:  Required:
Prepare the required journal entries at the following dates: March 1, 2017, December 31, 2017 and December 31, 2018.

Quizplus · Accepted Answer

The Answer of On March 1, 2017, Young Company paid cash to purchase the following stocks as long-term investments in available-for-sale securities:
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:  Required:
Prepare the required journal entries at the following dates: March 1, 2017, December 31, 2017 and December 31, 2018.

On March 1, 2017, Young Company Paid Cash to Purchase