On January 1, 2019, Seminole Inc. purchased 300 shares of Cornett Company common stock at $40...
On January 1, 2019, Seminole Inc. purchased 300 shares of Cornett Company common stock at $40 per share. The investment in Cornett Company stock has a market value of $10,500 on December 31, 2019. Seminole recorded the necessary year-end journal entry to record the unrealized gain or loss. Assume that on February 1, 2020, Seminole sold its investment in Cornett stock for $10,000.
Required:
| Prepare the journal entries of Seminole to record the sale. 3 journal entries |
Homework Answers
| 01/01/2019 | Short term investment | 12000 | |
| Cash | 12000 | ||
| To record purchased 300 shares of Cornett Company common stock at $40 per share |
| 12/01/2019 | Unrealized loss on investment | 1500 | |
| Short term investment | 1500 | ||
| To record $5 decrease in the per share value of Cornett Company |
| 02/01/2020 | Cash | 10000 | |
| Loss on short term investment | 500 | ||
| Short term investment | 10500 | ||
| To realize short term investment loss after selling shares of Cornett Company |
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On January 1, 2019, Seminole Inc. purchased 300 shares of
Cornett Company common stock at $40...
On January 1, 2019, Seminole Inc. purchased 300 shares of Cornett Company common stock at $40...
On January 1, 2019, Seminole Inc. purchased 300 shares of Cornett Company common stock at $40 per share. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of $10,500. Required: Prepare the year-end journal entry to record the unrealized gain or loss. 2 journal entries
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