HW_5 Answers - Exercises (10-15 min.) E 5-16 1 This is a...

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Exercises (10-15 min.) E 5-16 1 . This is a trading investment because Merrill Lynch intends to sell the stock within a short time. 2 . Dec . 15 Short-Term Investment (1,000 × $55)…. . 55,00 0 Cash………………………………………. 55,000 Purchased investment. Dec . 31 Short-Term Investment [(1,000 × $63) $55,000]…………………. . 8,000 Unrealized Gain on Investment……… 8,000 Adjusted investment to market value. 3 . BALANCE SHEET Current assets: Short-term investment, at market value………………… $63,00 0 INCOME STATEMENT Other revenue and gains: Unrealized gain on investment…………………………… $ 8,000
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(15-30 min.) E 5-18 Cash Short-Term Investment Dividend Revenue 55,000 35,000 35,000 2,000 850* 850* 33,000 36,000 Unrealized Loss On Investment Gain on Sale Of Investment 2,000 3,000 _____ *1,000 shares × $.85 = $850
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(15 min.) E 5-21 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Accounts Receivable……………………. .. 100,000
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This note was uploaded on 04/03/2012 for the course ACCT 23020 taught by Professor Dorff,p during the Spring '08 term at Kent State.

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HW_5 Answers - Exercises (10-15 min.) E 5-16 1 This is a...

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