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    Investment Transactions

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    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,

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    Solution Summary

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