Arctic Fans & Blowers invested $ 245,000 of extra cash in securities. Of the total amount invested, $ 115,000 was invested in bonds that Arctic plans to hold until maturity (the bonds were issued at par); $ 55,000 was invested in various equity securities that Arctic plans to hold for an indefinite period of time; and $ 75,000 was invested in the stock of various companies that Arctic intends to trade to make a short- term profit. At the end of the year, the market value of the held- to- maturity securities was $ 108,000; the market value of the trading securities was $ 52,000; and the market value of the available- for- sale securities was $ 85,000.Use the accounting equation to record all adjustments required at year end and indicate how the effects of each group of securities will be reported on the financial statements.
Answer to relevant QuestionsWhat are the two traditional approaches for preparing and presenting the statement of cash flows? What is the difference between these two approaches?Which types of business transactions would result in cash from operating activities? Give three examples of transactions that would be classified as cash flows from operating activities.During 2011, Mail Direct, Inc., incurred salary expense of $67,500, as shown on the income statement. The January 1, 2011, balance sheet showed salaries payable of $10,450; and the December 31, 2011, balance sheet showed ...The income statement for Sharp, Inc., for the month of May showed insurance expense of $250. The beginning and ending balance sheets for the month showed an increase of $50 in prepaid insurance. There were no payables ...Given the following information, calculate the change in cash for the year:Cash sales collected from customers ........ $31,000Cash received from sale of vehicle .......... 5,000Goodwill amortization expense for the ...
Post your question