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Investment Transactions

Investment Transactions

The beginning balance sheet of NASDAQ Corporation included the following:
Long-term investment in MSC Software (equity-method investment)..... $619,000

NASDAQ completed the following investment transactions during the year:
Mar. 16 Purchased 2,000 shares of ATI, Inc., common stock as a long-term
available-for-sale investment, paying $12.25 per share.
May 21 Received cash dividend of $0.75 per share on the ATI investment.
Aug 17 Received cash dividend of $81,000 from MSC Software.
Dec. 31 Received annual report from MSC Software; net income for the year

At year end, the market values of NASDAQ's investments are: ATI, $25,700; MSC $700,000.

1 Record the transactions in the journal of NASDAQ Corporation.
2 Post entries to the T-account for Long-Term Investment in MSC and
determine its balance December 31.
3 Show how to report the Long-Term Available-For-Sale Investments
and the Long-Term Investments in the MSC accounts on NASDAQ's
balance sheer at December 31,

Solution Summary

This answer includes an attached MS Excel spreadsheet contains detailed illustrations and instructions for the NASDAQ Corporation exercise.