TELUS reports short-term investments on its balance sheet. Suppose a division of
TELUS completed the following short-term investment transactions during 2013 and 2014:
2013
Nov. 6 Purchased 1,000 shares of Canadian Pacific Railway Limited (CPR) for $60,000.
TELUS plans to sell the shares at a profit in the near future.
27 Received a cash dividend of $0.25 per share on the CPR shares.
Dec. 31 Adjusted the investment in CPR shares. Current fair value is $65,000. TELUS plans to sell the shares in early 2014.
2014
Jan. 11 Sold the CPR shares for $66,000.
Requirement
Prepare T-accounts for Cash, Short-Term Investment, Dividend Revenue, Unrealized Loss or Gain on Investment, and Loss or Gain on Sale of Investment. Show the effects of TELUS's investment transactions. Start with a cash balance of $75,000. All of the other accounts start at zero.