Michael Company purchased a trading investment that had a carrying amount of $35,000 when they decided to sell it. Michael Company purchased the investment for $31,000. If Michael Company sold this investment for $45,000, Michael will have a(n):
A: Gain on Sale of Trading Security for $14,000.
B: Gain on Sale of Trading Security for $10,000.
C: Unrealized Loss on Trading Security of $4,000.
D: Unrealized Gain on Trading Security of $14,000.
A: Gain on Sale of Trading Security for $14,000.
B: Gain on Sale of Trading Security for $10,000.
C: Unrealized Loss on Trading Security of $4,000.
D: Unrealized Gain on Trading Security of $14,000.
举一反三
- R company sold old equipment for $25 000. The equipment had a cost of $50 000 and accumulated depreciation of $30 000. The entry to record the sale of the equipment would include a ( ). A: loss on disposal of $25 000 B: gain on disposal of $25 000 C: loss on disposal of $5 000 D: gain on disposal of $5 000
- Matthew Company purchases a trading security for $12,000 cash. The journal entry to record this transaction will include a: A: debit to the Investment in Trading Securities account and a credit to Cash. B: debit to Cash and a credit to the Investment in Trading Securities account. C: debit to Long-term Investment and credit Cash. D: debit to Dividend Revenue and credit to Cash.
- When a company receives a cash dividend from a trading security, the journal entry includes:
- A.400.B.4,000.C.14,000.D.40, 000. A: 400. B: 4,000. C: 14,000. D: 40, 000.
- 中国大学MOOC: A company purchased an equipment by paying $26, 000 cash. When this transaction is recorded, the cash account is debited for $26, 000.