newconnect.mheducation.com/flow/connect.html Aplia: My Co Help Research Paper D

Question

newconnect.mheducation.com/flow/connect.html Aplia: My Co Help Research Paper D DQCOffice 365 CUNYfirst DcAMS a Microsoft Office H., alcuNYPortal 21 MyOC % WebAssign Saved SEC Mumford Corporation invested $30,000 in marketable securities on December 4. On December 9, it sold some of these investments for $10,000, and on December 18, it sold more of these investments for $5,000. The securities sold on December 9 had cost the company $7.000, whereas the securities sold on December 18 had cost the company $6,000. a. Record the purchase of marketable securities on December 4. b. Record the sale of marketable securities on December 9 c. Record the sale of marketable securities on December 18. d. Record the necessary fair value adjustment on December 31, assuming that the market value of the company's remaining unsolo securities was $20,000. Complete this question by

Explanation / Answer

Date Accounts and Explanation Debit Credit 4-Dec marketable securities 30000 cash 30000 (To record the purchase of marketable securities) 9-Dec Cash 10000 marketable securities 7000 Gain on sale of investments (10000-7000) 3000 ( To record the sale of marketable securities at a gain) 18-Dec cash 5000 Loss on sale of the investment (6000-5000) 1000 marketable securities 6000 ( To record the sale of marketable securities at a loss) 31-Dec marketable securities 3000 unrealized holding gain on the investments 3000 ( To record the adjustment to the balance sheet valuation) Cost of investment =(30000-7000-6000)= 17000 Current market value = 20000 unrealized gain = 20000-17000 = 3000

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