During the fourth quarter of 2012, California, Inc., generated excess cash, which the company invested in trading
Question:
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Requirements
1. Open T-accounts for Cash (including its beginning balance of $21,000), Short-Term Investment, Dividend Revenue, and Unrealized Gain (Loss) on Investment.
2. Journalize the foregoing transactions and post to the T-accounts.
3. Show how to report the short-term investment on California€™s balance sheet at December 31.
4. Show how to report whatever should appear on California€™s income statement for the year ended December 31, 2012.
5. California sold the trading securities for $11,928 on January 11, 2013. Journalize thesale.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Reqs 1 and 2 Cash ShortTerm Investment 21000 13200 13200 2400 552 10800 Dividend Revenue Un...View the full answer
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Related Book For 
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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