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Bridgeport Company buys and sells securities expecting to make money on short-term price movements. Bridgeport purchased 150,000 shares of Intel common stock at $20 per share on December 1. On December
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Bridgeport Company buys and sells securities expecting to make money on short-term price movements. Bridgeport purchased 150,000 shares of Intel common stock at $20 per share on December 1. On December 31, Intel common stock's market price was $23 per share. Select the appropriate adjusting journal entry on December 31, if any.a. Dr. Investment in Intel $450,000

Cr. Cash $450,000
b. Dr. Investment in Intel $450,000
Cr. OCI $450,000
c. No entry is needed.
d. Dr. Investment in Intel $450,000
Cr. Net unrealized holding gains/losses - (P&L) $450,000

User Niyaz
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1 Answer

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19 votes

Answer:

d. Dr. Investment in Intel $450,000 Cr. Net unrealized holding gains/losses - (P&L) $450,000

Step-by-step explanation:

Adjusting journal entry

Date Account titles and Explanation Debit Credit

Dec 31 Investment in Intel $450,000

[($23-$20)*150000 shares]

Net unrealized holding gains/losses (P&L) $450,000

User Thehiatus
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