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Marketable Securities On January 3, 20x1, Matthew Corporation purchased the following equity securities as an investment
Marketable Securities On January 3, 20x1, Matthew Corporation purchased the following equity securities as an investment. The securities are classified as teadines Number of Cost of Total Company Shares Share Cost A 800 $20 $ 16,000 B 2.000 12 24,000 400 22 8,800 Prepare the journal entry to record the acquisition of the stock.
Expert Solution
Answer:
| Account Titles and Explanation | Debit | Credit |
| Investment in Trading Securities | $16,000 | |
| Cash | $16,000 | |
| To record purchase of 800 equity shares of Company A at $20 per share. |
| Account Titles and Explanation | Debit | Credit |
| Investment in Trading Securities | $24,000 | |
| Cash | $24,000 | |
| To record purchase of 2000 equity shares of Company B at $12 per share. |
| Account Titles and Explanation | Debit | Credit |
| Investment in Trading Securities | $8,800 | |
| Cash | $8,800 | |
| To record purchase of 400 equity shares of Company C at $22 per share. |
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