Question: Below are selected T-accounts for the RunnerTech Company. Below are selected T-accounts for the RunnerTech Company. Required: Complete the following journal entries and answer the

Below are selected T-accounts for the RunnerTech Company. Below are selected T-accounts for the RunnerTech Company.

Required:
Complete the following journal entries and answer the following questions:
a. Purchased securities available for sale for cash. Prepare the journal entry.
b. Received cash dividends on the investments. Prepare the journal entry.
c. Sold SAS investments at a gain. Prepare the journal entry.
d. At year-end, the SAS portfolio had a fair value of $14,558. Prepare the adjusting entry.
e. What would be reported on the balance sheet related to the SAS investments on December 31?
f. What would be reported on the income statement for the year?
g. How would year-end reporting change if the investments were categorized as trading securities instead of securities available forsale?

(In Other Investments) Investments in SAS (In Other Comprehensive Income) Net Unrealized Losses/Gains-SAS 1/1 Purchase AJE 1/1 AJE 5,587 19,000 ? 15,239 14,558 1,565 Sale Sale 5,683 12/31 12/31 Income Statement Accounts Dividend Revenue Gain on Sale of Investments Earned Sale 2,384 7,771 12/31 12/31 2,384

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a Investments in SAS A 19000 Cash A 19000 b Cash A 7771 Dividend revenue R SE 7771 c Cash A 16531 Ne... View full answer

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