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

Question:

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

During the fourth quarter of 2012, Spring, Inc., generated exces

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.

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...
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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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