During 2010, Nike invested $ 500,000 of extra cash in securities. Of the total amount invested, $ 275,000 was invested in bonds that Nike plans to hold until maturity (the bonds were issued at par value); $ 165,000 was invested in various equity securities that Nike plans to hold for an indefinite period of time; and $ 60,000 was invested in the stock of various companies that Nike intends to trade to make a short- term profit. At the end of the year, the market value of the held- to- maturity securities was $ 200,000; the market value of the trading securities was $ 145,000; and the market value of the available- for- sale securities was $ 75,000.Use the accounting equation to record all adjustments required at year end, and indicate how the effects of each group of securities will be reported on the financial statements.

  • CreatedSeptember 01, 2014
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