(Answered) On december 31 2009 marsh company held 1000 shares of x

Accounting

On December 31, 2009, Marsh Company held 1,000 shares of X Company common stock in its portfolio of long term investments in available for sale securities. The stock had cost $15 per share and has a current market value of $13 per share. The December 31, 2009 balance sheet showed the following:

Assets:
Long term investment in available for sale securities ........ $15,000
Less: Allowance for change in value of investment ......... (2,000)$13,000

Stockholders Equity:
Unrealized decrease in value of available for sale securities ...... $ (2,000)
During 2010 the company acquired as long term investments 900 shares of Y Company common stock for $18 per share and 800 shares of Z Company common stock for $22 per share. At the end of 2010 the respective market values per share were: X $14, Y $17, and Z $20.

Required:
Record the purchase of the investments in 2010 and the adjusting entry on December 31, 2010, and show the respective December 31, 2010 balance sheet accounts.

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