Accounting for short-term equity securities
Monroe Auto Supplies engaged in several transactions involving short-term equity securities during 2011, shown in the following list. The company had never invested in equity securities prior to 2011. All securities were classified as trading securities.
a. Prepare journal entries for each transaction.
b. What effect did these transactions have on the company's 2011 net income?
The following information was extracted from the December 31, 2011, current asset section of the balance sheets of four different companies:
There were no transactions in short-term equity securities during 2012, and as of December 31, 2012, the controllers of each company collected the following information:
a. Compute the change in the wealth levels ...