During the fourth quarter of 2013, the operations of Baris Carpet Centre generated excess cash, which the

Question:

During the fourth quarter of 2013, the operations of Baris Carpet Centre generated excess cash, which the company invested in securities, as follows:
Dec. 10 Purchased 2,500 common shares as a held-for-trading investment, paying $15 per share.
17 Received cash of $0.50 per share on the held-for-trading investment.
31 Adjusted the held-for-trading investment to its fair value of $40,000.
Requirements
1. Prepare T-accounts for Cash, balance of $85,000; Short-Term Investment; 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 Baris's at December 31.
4. Show how to report whatever should appear on Baris's income statement.
5. On January 6, 2014, Baris sold the held-for-trading investment for $36,000. 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... 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...