Western Co. bought 3,200 shares of New Brunswick common stock at $34; 600 shares of Paris stock at $46.25; and


Western Co. bought 3,200 shares of New Brunswick common stock at $34; 600 shares of Paris stock at $46.25; and 1,000 shares of Ireland stock at $73—all as available-for-sale investments. At December 31, Hoover’s Online reports New Brunswick stock at $28.125, Paris at $48.00, and Ireland at $68.00.

1. Determine the cost and the fair value of the long-term investment portfolio at December 31.
2. Record Western’s adjusting entry at December 31.
3. What would Western report on its statement of other comprehensive income and balance sheet 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...
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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Related Book For  answer-question

Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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Question Posted: April 22, 2013 01:00:51