(Learning Objective 1: Accounting for an available for sale investment; unrealized gain or loss) Assume UPS completed these long term available for sale investment transactions during 20X7:
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20X7 |
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Apr. 10 |
Purchased 300 shares of Sysco stock, paying $20 per share. UPS intends to hold the investment for the indefinite future. |
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July 22 |
Received a cash dividend of $1.25 per share on the Sysco stock. |
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Dec. 31 |
Adjusted the Sysco investment to its current market value of $5,100. |
1. Journalize UPS’s investment transactions. Explanations are not required.
2. Show how to report the investment and any unrealized gain or loss on UPS’s balance sheet at December 31, 20X8. Ignore income tax.