During the fourth quarter of 20X6, Cablevision, Inc., generated excess cash, which the company invested in securities,

Question:

During the fourth quarter of 20X6, Cablevision, Inc., generated excess cash, which the company invested in securities, as follows:

Required
1. Prepare T-accounts for: Cash, balance of $20,000; Short-Term Investment; Dividend Revenue; Unrealized Gain on Investment (or Unrealized Loss on Investment).
2. Show how to report the short-term investment on the Cablevision balance sheet at December 31.
3. Show how to report whatever should appear on Cablevision's income statement.
4. Cablevision sold the trading investment for $8,000 on January 10, 20X7. Journalize the sale.

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...