Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions: Dec. 10 Purchased 400 shares of Carroll Company common stock for $75 per share. 21 Purchased 700 shares of Dynamo Company common stock for $30 per share. At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share. Question Journal entries to record the preceding information (pay attention to dates) would include: Credit to Cash of $51,000 Credit to Unrealized Holding Gains/Losses - Equity Investments of $3,700 Credit to Equity Investments of $30,000 Credit to Fair Value Adjustment - Equity Investments of $3,700
Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions:
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Dec. 10 |
Purchased 400 shares of Carroll Company common stock for $75 per share. |
|
21 |
Purchased 700 shares of Dynamo Company common stock for $30 per share. |
At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share.
Question
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Credit to Cash of $51,000 |
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Credit to Unrealized Holding Gains/Losses - Equity Investments of $3,700 |
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Credit to Equity Investments of $30,000 |
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Credit to Fair Value Adjustment - Equity Investments of $3,700 |
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