On December 31, 2012, Marsh Company held 1,000 shares of Xenon Company common stock in its portfolio

Question:

On December 31, 2012, Marsh Company held 1,000 shares of Xenon Company common stock in its portfolio of available-for-sale securities. The stock had cost $15 per share and has a current market value of $13 per share. The December 31, 2012, balance sheet showed the following:

During 2013, Marsh acquired 900 shares of Yellow Company common stock for $18 per share and 800 shares of Zebra Company common stock for $22 per share. At the end of 2013, the respective market values per share were: Xenon, $14; Yellow, $17; and Zebra, $20.
Required:
1. Prepare the journal entries necessary to record the purchase of the investments in 2013 and the adjusting entry needed on December 31, 2013.
2. What would Marsh disclose on its December 31, 2013, balance sheet related to these investments?

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...