On June 30, 2009, MetroMedia, Inc., purchased 10,000 shares of Mitek stock for $
ID: 2348379 • Letter: O
Question
On June 30, 2009, MetroMedia, Inc., purchased 10,000 shares of Mitek stock for $20 per share. The following information pertains to the price per share of Mitek stock:
Price
12/31/2009 $ 24
12/31/2010 31
Requirement 1:
Assume that management intends to hold the stock as securities available for sale for three years or more. Show how the stock investment and its holding gains would be reported at the end of 2010 and 2009 on the classified balance sheet and income statement. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Balance Sheet
2010 2009
Noncurrent Assets
$ $
Stockholders
Explanation / Answer
06/30/2009 Trading Securities Dr.200000 Cash Cr200000
12/31/2009 Trading Securities Dr. 40000 Unrealized gain on trading securities Cr.40000
12/31/2010 Trading Securities Dr. 70000 Unrealized gain on trading securities Cr.70000
12/31/2011 Unrealized loss on trading securities Dr.60000 Trading Securities Cr. 60000
2/14/2012 Cash Dr 220000 Loss on sale of trading securities Dr.30000
Trading Securities Cr.250000
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