Test: Chapter 10 EC Exercises and Problems T This Test: 6 pts This Question: 1 p
ID: 2589701 • Letter: T
Question
Test: Chapter 10 EC Exercises and Problems T This Test: 6 pts This Question: 1 pt On August 20, 2016, Macak, Co. decides to invest excess cash of $1,200 by purchasing 200 shares of Jackrabbit, Inc stock at $6 per share. At year-end, December 31, 2016, Jackrabbir's market price was $5 per share. The invesment is catagorized as avalabie for-sae Jounalize the adjusting entry needed at December 31,2016. (Record debits first, then credits. Select the explanation on the last ine of the journal enty Date Dec. 31, 2016Explanation / Answer
Date
Particulars
Dr.
Cr.
20/08/2017
JackRabbit Inc. Co.(Available for Sale)
$1,200.00
Cash
$1,200.00
Adjusting Entry
31/12/2016
Unrealized Loss((200 Shares * ($6 -$5))
$200.00
JackRabbit Inc. Co.(Available for Sale)
$200.00
Date
Particulars
Dr.
Cr.
20/08/2017
JackRabbit Inc. Co.(Available for Sale)
$1,200.00
Cash
$1,200.00
Adjusting Entry
31/12/2016
Unrealized Loss((200 Shares * ($6 -$5))
$200.00
JackRabbit Inc. Co.(Available for Sale)
$200.00
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