On June 30, 2009, MetroMedia, Inc., purchased 10,000 shares of Mitek stock for $20 per share. The following information pertains to the price per share of Mitek stock:
Price
12/31/2009 $ 24
12/31/2010 31
Required:
Assume that MetroMedia management purchased the Mitek stock as trading securities. Prepare the journal entries required on each date given. (Omit the "$" sign in your response.)
Assume that management intends to hold the stock as available-for-sale securities for three years or more. Show how the stock investment and its net unrealized losses/gains would be reported at the end of 2013 and 2012 on the classified balance sheet and income statement.
Balance Sheet Partial
At December 31, 2013 2014
Income statement Partial
At December 31, 2013 2014
Assume that management purchased the stock as trading securities. Show how the investment and net unrealized losses/gains would be reported at the end of 2013 and 2012 on the classified balance sheet and income statement
Balance Sheet Partial
At December 31, 2013 2014
Stockholders Equity