Question: During the fourth quarter of 2012, Spring, Inc., generated excess cash, which the company invested in trading securities as follows: Requirements 1. Open T-accounts for

During the fourth quarter of 2012, Spring, Inc., generated excess cash, which the company invested in trading securities as follows:

Requirements
1. Open T-accounts for Cash (including its beginning balance of $19,000), Short-Term Investments, 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 Spring€™s balance sheet at December 31.
4. Show how to report whatever should appear on Spring€™s income statement for the year ended
December 31, 2012.
5. Spring sold the trading securities for $9,850 on January 14, 2013. Journalize thesale.

2012 Purchased 1,300 common shares as an investment in trading securities, paying $8 per share. Received cash dividend of $0.22 per share on the trading securities. Adjusted the trading securities to fair value of $7 per share. Nov 16 Dec 16 Dec 31

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