Mail 4 You Corporation generated excess cash and invested in securities as follows Jul 2 Purchased 3,400 shares of Bravo, Inc common stock at $11 00 per share Mail 4 You holds the stock in its active trading account and plans to sell the stock within three months, when the company will need the cas...

Requirement 1 Both of the investments made during 2016 are trading investments because Mail 4 You ow ...

Mail 4 You Corporation generated excess cash and invested in securities as follows: Jul. 2 Purchased 3,400

Question:

Mail 4 You generated excess cash and invested in securities as follows:
Jul. 2 Purchased 3,400 shares of Bravo, Inc. at $11.00 per share. Mail 4 You holds the stock in its active trading account and plans to sell the stock within three months, when the company will need the cash for normal operations.
Aug. 21 Received a cash of $0.30 per share on the Bravo stock investment.
Sep. 16 Sold the Bravo stock for $14.80 per share.
Oct. 8 Purchased 400 shares of Zigbo stock at $15.00 per share. The stock is held in the active trading account as Mail 4 You plans to hold the Zigbo stock for less than five months.
Dec. 31 Zigbo stock's current market price is $5.00 per share.
Requirements
1. Classify each of the investments made during 2016. (Assume the investments represent less than 20% of ownership of outstanding voting stock.)
2. Journalize the 2016 transactions. Explanations are not required.
3. Prepare T-accounts for the investment assets, and show how to report the investments on Mail 4 You’s at December 31, 2016. Common Stock
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