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ezto.mheducation.com Mail - josephwa@my.easternet.edu https://www.irs.gow)pubfirs-po)14506t.pdf connect. Intermediate Accounting 303: ACCT 303 01 Spring 2018 ACCOUNTING Chapter 12 HW Question 11 (of 16) 11. 10.00 points On February 18, 2016, Union Corporation purchased 17,000 shares of IBM common stock as a long-term investment at $67 per share. On December 31, 2016, and December 31, 2017, the market value of IBM stock is $65 and $68 per share, respectively 2. &3. Prepare the adjusting entry for December 31, 2016 and 2017. (f no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the adjusting entry for December 31, 2016 2 Record the adjusting entry for December 31, 2017. esc ¢ F6

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Journal Entries:

Date Accounts Titles and explanation Debit $ Credit $ Dec 31, 2016 Unrealised loss on revaluation 34000 Long term Investment - IBM 34000 (revaluation of IBM stock from $67 to $65 per share = 2*17000 = 34000) Dec 31, 2017 Long term Investment - IBM 51000 Unrealised loss on revaluation 34000 Unrealised profit on revaluation 17000 (revaluation of IBM stock from $65 to $68 per share = 3*17000 = 51000)

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