The following data pertain to Petroni Company’s investment in marketable equity securities. Petroni is a publicly...
The following data pertain to Petroni Company’s investment in marketable equity securities. Petroni is a publicly held company. Assume that all securities were bought in 2019 and held throughout 2019 and 2020 and ignore taxes.
Market Value Cost 12/31/20 12/31/19 Company Q 165,000 170,000 110,000 Company R 160,000 125,000 115,000
1. Make the journal entries to record the securities and to adjust to market value at 12/31/19 and 12/31/20.
Homework Answers
| JOURNAL ENTRY | ||||||
| DATE | ACCOUNT TITLE | DEBIT | CREDIT | |||
| INVESTMENT IN COMPANY Q | ||||||
| Investment in Securities-Company Q | 110000 | |||||
| Cash | 110000 | |||||
| 12/31/2019 | Investment in Securities-Company Q | 60000 | (170000-110000) | |||
| Unrealized gain | 60000 | |||||
| 12/31/2020 | Unrealized gain | 5000 | (170000-165000) | |||
| Investment in Securities-Company Q | 5000 | |||||
| INVESTMENT IN COMPANY R | ||||||
| Investment in Securities-Company R | 115000 | |||||
| Cash | 115000 | |||||
| 12/31/2019 | Investment in Securities-Company R | 10000 | (125000-115000) | |||
| Unrealized gain | 10000 | |||||
| 12/31/2020 | Investment in Securities-Company R | 35000 | (160000-125000) | |||
| Unrealized gain | 35000 | |||||
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The following data pertain to Petroni Company’s investment in
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