A32: EX. 15.01

*Please help with #1-2 showing formulas for each solution when necessary.

Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31:

Record these transactions on page 10:

20Y2
Feb.	1	Purchased 7,500 shares of Caldwell Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding.
May	1	Purchased securities of Holland Inc. as a trading investment for $126,000.
July	1	Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission.
	31	Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell Inc. stock.
Nov.	15	Sold the remaining shares of Caldwell Inc. for $51 per share less a $90 brokerage commission.
Dec.	31	The trading securities of Holland Inc. have a fair value on December 31 of $120,000.

Record these transactions on page 11:

20Y3
Apr.	1	Purchased securities of Fuller Inc. as a trading investment for $125,000.
Oct.	14	Sold securities of Fuller Inc. that cost $25,000 for $30,000.
Dec.	31	The fair values of the Holland Inc. and Fuller Inc. securities are as follows:

Issuing Company	Cost	Fair Value
Holland Inc.	$126,000	$132,500
Fuller Inc.	100,000	115,600

	Required:
1.	Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places and round your final answers to the nearest dollar.
2.	Prepare the Trading Investments section of the December 31, 20Y3, balance sheet for Rios Co. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed.
3.

CHART OF ACCOUNTS

Rios Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
161	Investments-Caldwell Inc. Stock
162	Trading Investments-Holland Inc.
163	Trading Investments-Fuller Inc.
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable
251	Sales Tax Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Unrealized Gain (Loss) on Available-for-Sale Investments
351	Cash Dividends
352	Stock Dividends

	REVENUE
410	Sales
611	Interest Revenue
612	Dividend Revenue
631	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments

	EXPENSES
511	Cost of Merchandise Sold
512	Bad Debt Expense
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Repairs Expense
534	Selling Expenses
535	Rent Expense
536	Insurance Expense
537	Office Supplies Expense
538	Store Supplies Expense
561	Depreciation Expense-Store Equipment
562	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense
731	Loss on Sale of Investments
741	Unrealized Loss on Trading Investments

Labels Current assets Current liabilities December 31, 2043 Amount Descriptions Net income Net loss Other income (loss) Other comprehensive income (loss) Trading investments (at cost) Trading investments (at fair value)