(Solution) - Julie McBeth Company made two short term investments in marketab -(2025 Original AI-Free Solution)

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Julie McBeth Company made two short-term investments in marketable securities during the current fiscal year. At year-end, the following summary information was available.
a. Purchased 5% of the outstanding common shares of Duncan Company for $300,000 plus brokerage fees of $30,000.
b. Purchased 2% of the outstanding common shares of Macduff Company for $400,000 plus brokerage fees of $40,000.
c. At year-end, the Duncan shares had a market value of $350,000. The Macduff shares had a market value of $360,000. McBeth owned no other investments in common stock.
Show how the two purchases of stock and the year-end information would be entered into McBeth?s accounting system. What information regarding these investments will you expect to see reported on the year-end balance sheet? Be specific as to account names, their location on the balance sheet, and dollar amounts.