Other long-term assets (Learning Objective 8) 5–10 min.

Specify how each of the following items would be reported in the financial statements of Cunnington Enterprises for its current fiscal year. Also specify the amount that would appear on the statement. Some items may be reported on more than one financial statement. In these cases, specify the amount that would appear on each statement.

Income Statement (IS)

Balance Sheet (BS)

Change in Stockholders’ Equity (SE)

1. Cunnington Enterprises received $143 of dividends during the year on stock it owned in Haskins, Inc.

2. At year-end, Cunnington Enterprises owned a $5,000 US Treasury Bond.

3. Cunnington Enterprises sold stock for $580 cash that had been held as an available-

for-sale security. The stock had been purchased for $520 and hadn’t changed in value until the time of its sale.

4. Stock that Cunnington Enterprises purchased for $875 during the year as an available-

for-sale security has a market value of $940 at the year-end balance sheet date.

5. Stock that Cunnington Enterprises purchased for $640 during the year as a trading security had a market value of $655 at the year-end balance sheet date.

6. $280 of interest earned on a bond that Cunnington Enterprises purchased from the State of Washington.

AppendixLO1