InstructionsDuring January 2020, Long Corporation for the first time decided to acquire some equity securities as a means of putting some of its idle cash to work. The securities are classified as trading securities. At March 31, when Long prepares its first quarterfinancial statements, the following information about the acquired securities is available:SecuritiesCostMarket1$52,000 550,000232,000 29,000335,000 27.000Required:a. Prepare the journal entries to record the acquisition in January and valuation at the end of the first quarter of 2020.b. Assume that on June 30, 2020, the company still has this same portfolio The market value of 1 is S57.000 2 is S30 000 and 3 s 531.000What journal entry if any should be prepared at the end of the second quarter?c. On August 15, 2020, Long Corporation sold Security 3 for $33.000 Prepare the joumal entry to record this transaction.

Trading securities - These are the securities that are held by the company for a short period of…

Instructions During January 2020, Long Corporation for the first time decided to acquire some equity securities as a means of putting some of its idle cash to work. The securities are classified as trading securities. At March 31, when Long prepares its first quart financial statements, the following information about the acquired securities is available: Securities Cost Market $52,000 $50,000 32,000 29,000 35,000 27,000 Required: a. Prepare the joumal entries to record the acquisition in January and valuation at the end of the first quarter of 2020. b. Assume that on June 30, 2020, the company still has this same portfolio The market value of 1 is $57,000, 2 is $30,000 and 3 is $31,000. What journal entry, if any should be prepared at the end of the second quarter? . On August 15, 2020, Long Corporation sold Security 3 for $33,000. Prepare the journal entry to record this transaction.

Instructions During January 2020, Long Corporation for the first time decided to acquire some equity securities as a means of putting some of its idle cash to work. The securities are classified as trading securities. At March 31, when Long prepares its first quart financial statements, the following information about the acquired securities is available: Securities Cost Market $52,000 $50,000 32,000 29,000 35,000 27,000 Required: a. Prepare the joumal entries to record the acquisition in January and valuation at the end of the first quarter of 2020. b. Assume that on June 30, 2020, the company still has this same portfolio The market value of 1 is $57,000, 2 is $30,000 and 3 is $31,000. What journal entry, if any should be prepared at the end of the second quarter? . On August 15, 2020, Long Corporation sold Security 3 for $33,000. Prepare the journal entry to record this transaction.

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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