General Corporation has the following investments in equity securities at December 31, 2002 (there are no existing balances in the market adjustment account): Percentage of Shares Owned SEI7IT Market Price Company Classification Shares Cost at 12/31/02 Clarke Corporation Marlin Company Trading Available-for-sale 1,000 2% S75 S78 4,000 15 34 32 Air Products, Inc. Available for-sale 3,000 10 46 43 Required: 1. Prepare any adjusting entries required at December 31, 2002 2. Illustrate how these investments would be presented on General Corporation's balance sheet at December 31, 2002. The available-for-sale securities are expected to be held for two to five years. 3. Prepare the journal entry on April 10, 2003, when General Corporation sold the Clarke Corporation investment for $72 per share.

General Corporation has the following investments in equity securities at December 31, 2002 (there are no existing balances in the market adjustment account): Percentage of Shares Owned SEI7IT Market Price Company Classification Shares Cost at 12/31/02 Clarke Corporation Marlin Company Trading Available-for-sale 1,000 2% S75 S78 4,000 15 34 32 Air Products, Inc. Available for-sale 3,000 10 46 43 Required: 1. Prepare any adjusting entries required at December 31, 2002 2. Illustrate how these investments would be presented on General Corporation's balance sheet at December 31, 2002. The available-for-sale securities are expected to be held for two to five years. 3. Prepare the journal entry on April 10, 2003, when General Corporation sold the Clarke Corporation investment for $72 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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