Malox Co. purchased short-term investments in available-for-sale securities at a

Question

Malox Co. purchased short-term investments in available-for-sale securities at a cost of $100,000 on November 25, 2009. At December 31, 2009, these securities had a market value of $94,000. This is the first and only time the company has purchased such securities.





Requirement 1:



Prepare the December 31, 2009, year-end adjusting entry for the securities' portfolio. (Omit the "$" sign in your response.)





Date

General Journal

Debit

Credit



Dec. 31, 2009

(Click to select)Unrealized Loss-EquityEquity ExpensesMarket Adjustment-Available-for-SaleLossBond Expenses









(Click to select)Market Adjustment-Available-for-SaleBond ExpensesInvestmentEquity ExpensesUnrealized Loss-Equity








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Requirement 2:



Prepare the April 6, 2010, entry when Malox sells one-fourth of these securities for $27,000. (Omit the "$" sign in your response.)





Date

General Journal

Debit

Credit



Apr. 6, 2010

(Click to select)CashLoss on Sale of Short-Term InvestmentsShort-Term Investments-AFSSecuritiesGain on Sale of Short-Term Investments









(Click to select)Unrealized GainProfitGain on Sale of Short-Term InvestmentsShort-Term Investments-AFSCash









(Click to select)CashShort-Term Investments-AFSUnrealized GainProfitGain on Sale of Short-Term Investments








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check my workeBook Links (2)references

Explanation / Answer

Requirement 1 Date 31 Dec 2009 General Journal security issue Debit 4100 Credit 2300 Requirement 2 : Date April 6 ,2010 General Journal Investement security Debit 6600 Credit 7100

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