During the fourth quarter of 2021, Harvestology, Inc., generated excess cash, which the company invested in equity

Question:

During the fourth quarter of 2021, Harvestology, Inc., generated excess cash, which the company invested in equity securities as follows: 


Requirements 

1. Open T-accounts for Cash (including its beginning balance of $21,000), Investment in Equity Securities, Dividend Revenue, and Unrealized Gain (Loss) on Equity Securities.

2. Journalize the foregoing transactions and post to the T-accounts.

3. Show how to report the short-term investment on Harvestology’s balance sheet at December 31, 2021.

4. Show how to report whatever should appear on Harvestology’s income statement for the year ended December 31, 2021.

5. Harvestology sold the equity securities for $6,500 on January 14, 2022. Journalize the sale.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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