On January 31, 20X0, McBurger Corporation Purchased the Following Shares

Essay

On January 31, 20X0, McBurger Corporation purchased the following shares of voting common stock as long-term investments in available-for-sale securities. None of these holdings amounted to more than 5% of the respective company's outstanding voting shares. The accounting period ends December 31. $$\begin{array} { | l | r | r | r | } \hline \text { Stock } & \text { Cost } & \text { Market at Dec. 31, 20X0 } & \text { Market at Dec. 31, 20X1 } \\\hline \text { Orange Corporation } & \$ 15,000 & \$ 12,000 & \$ 14,000 \\\hline \text { Bailey Inc. } & \$ 13,000 & \$ 12,000 & \$ 13,000 \\\hline\end{array}$$ All the Bailey stock was sold for $13,500 on January 12, 20X2. Prepare the required journal entries at the following dates: January 31, 20X0, December 31, 20X0, December 31, 20X1 and January 12, 20X2.