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

Question:

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

(In Other Investments) Investments in SAS (In Other Comprehensive Income) Net Unrealized Losses/Gains-SAS 1/1 Purchase A

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?

Balance Sheet
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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...