1) Music City held 1,500 of Navia common stock with a book value of $55,275. It sold the shares on December 13 for $74,387. Prepare the journal entry to record the sale.
2) Micron held airport bond with a par value of $250,000 and a fair market value of $247,380. Micron also held 1,500 shares of Navia common stock with a par value of $50,000 and a fair market value of $52,225. Prepare the journal entry to record the fair market value of the investments as of December 31.
3) On January 2, 2001, Biloxi Company purchased 10,000 shares of Greenwich Company common stock at $21 per share plus a $5,200 commission. On August 6, 2000, Greenwich Company declared and paid dividends of $1.10 per share, and on December 31, 2001 it reported a net income of $150,000. Assuming Greenwich Company has 25,000 common shares outstanding; prepare the necessary entries on the books of Biloxi Company to account for these transactions.
After the above, the balance in the Long Term Investments account is $___________________________________
Please explain in simplest form; show all work and show the basic concept. You can use Excel or Word.
Please see the attached file for full problem description.
Journal entries have been prepared.