During the fourth quarter of 2012, Spring, Inc., generated excess cash, which the company invested in trading
Question:
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 Springs balance sheet at December 31.
4. Show how to report whatever should appear on Springs income statement for the year ended
December 31, 2012.
5. Spring sold the trading securities for $9,850 on January 14, 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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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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