Specify how each of the following items would be reported in the financial statements of Tanaka Enterprises
Question:
Specify how each of the following items would be reported in the financial statements of Tanaka Enterprises for its current fiscal year. Also specify the amount that would appear on the statement. Some items may be reported on more than one financial statement. In these cases, specify the amount that would appear on each statement.
Income Statement (IS)
Balance Sheet (BS)
Change in Stockholders’ Equity (SE)
1. Tanaka Enterprises received $55 of dividends during the year on stock it owned in Jasper, Inc.
2. At year-end, Tanaka Enterprises owned a $1,000 U.S. Treasury Bond.
3. Tanaka Enterprises sold stock for $110 cash that had been held as an avail¬ able-for-sale security. The stock had been purchased for $90 and hadn’t changed in value until the time of its sale.
4. Stock that Tanaka Enterprises purchased for $90 during the year as an available- for-sale security has a market value of $110 at the year-end balance sheet date.
5. Stock that Tanaka Enterprises purchased for $90 during the year as a trading security had a market value of $110 at the year-end balance sheet date.
6. $75 of interest earned on a bond that Tanaka Enterprises purchased from the State of Washington.
Step by Step Answer: