Ship Your Way Corporation generated excess cash and invested in securities as follows: 2016 Jul. 2 Purchased
Question:
2016
Jul. 2 Purchased 3,600 shares of TJF, Inc. common stock at $11.00 per share. Ship Your Way 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 dividend of $0.10 per share on the TJF stock investment.
Sep. 16 Sold the TJF stock for $15.10 per share.
Oct. 8 Purchased 400 shares of Seanco stock at $13.00 per share. The stock is held in the active trading account as Ship Your Way plans to hold the Seanco stock for less than five months.
Dec. 31 Seanco stock's current market price is $6.00 per share.
1. Classify each of the investments made during 2016.
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 Ship Your Way’s balance sheet at December 31, 2016. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...
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Requirement 1 Both of the investments made during 2016 are trading investments because Ship Your Way ...View the full answer
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Related Book For 
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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