During the fourth quarter of 2013, Cablevision Inc. generated excess cash, which the company invested in securities,
Question:
During the fourth quarter of 2013, Cablevision Inc. generated excess cash, which the company invested in securities, as follows:
Nov. 12 Purchased 1,000 common shares as a held-for-trading investment, paying $9 per share.
Dec. 14 Received cash dividend of $0.26 per share on the held-for-trading investment.
31 Adjusted the held-for-trading investment to its fair value of $7.50 per share.
Requirements
1. Prepare T-accounts for Cash, beginning balance of $20,000; Short-Term Investment; Dividend Revenue; and Unrealized Gain on Investment or Unrealized Loss on Investment.
2. Journalize the foregoing transactions, and post to the T-accounts.
3. Show how to report the short-term investment on the Cablevision balance sheet at December 31.
4. Show how to report whatever should appear on Cablevision's income statement.
5. Cablevision sold the held-for-trading investment for $8,000 on January 10, 2014. Journalize the sale.
Balance SheetBalance 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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Reqs 1 and 2 1000 9 9000 1000 026 260 90001000 750 1500 Req 2 Req 3 BALANCE SHEET Cu...View the full answer
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
