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.
Required to do:
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