During the most recent year, Michael Co. bought 3,800 shares of Canada common stock at $38, 640

Question:

During the most recent year, Michael Co. bought 3,800 shares of Canada common stock at $38, 640 shares of Brazil stock at $47.25, and 1,500 shares of Russian stock at $77 - all as available for sale investments. At December 31, Hoover's Online reports Canada stock at $29,125, Brazil at $49.25, and Russian at $69.50?
Requirements
1. Determine the cost and the fair value of the long-term investment portfolio at December 31?
2. Record Michael's adjusting entry at December 31?
3. What would Michael Co. report on its statement of comprehensive income and balance sheet at year-end for the information given? Make the necessary disclosures. Ignore income tax?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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