How do I find the correct answers to (4) ? d. Using the same transaction informa

Question

How do I find the correct answers to (4) ?

d. Using the same transaction information as above and assuming the investments in marketable securities are classified as available-for-sale, post the journal entries to their respective T-accounts, and (ii) record each of the transactions in the financial statement effects template (1) Purchased 6,000 common shares of Liu, Inc., for $12 cash per share. (2) Received a cash dividend of $1.10 per common share from Liu. (3) Year-end market price of Liu common stock is $11.25 per share. (4) Sold all 6,000 common shares of Liu for $66,900 i. Prepare journal entries to record the four transactions.

Explanation / Answer

4) Journal entry :

Date accounts & explanation debit credit Cash 66900 Loss on sale of investment 5100      Unrealized loss-AOCI 4500      Invesment in Liu 67500 (To record sale of investment)

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