1.
Available-for-sale investments:
Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.
To Journalize: The transaction of S Investments’ in V’s voting stock for the year 2016.
2.
To journalize: The sale of stock in investment.
3.
To identify: The account(s) and amount(s) which S Investments would report in its income statement for the year ended December 31, 2017.
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