Investments in Trading Securities}

Wong Corporation acquired the following equity securities during 2018:

Wong classifies these securities as trading securities. During 2018, Northern paid a dividend of \(\$ 1.20\) per share, and Montgomery paid a dividend of \(\$ 1.80\) per share. At December 31, 2018, the Northern shares have a market value of \(\$ 75\) per share, and the Montgomery shares have a market value of \(\$ 25\) per share.
\section*{Required:}
1. Prepare entries for Wong's journal to record these two investments and the receipt of the dividends.
2. Calculate the market value of Wong's short-term investment portfolio at December 31, 2018.
3. Prepare the necessary journal entry at December 31,2018 .
4. How would these securities be disclosed on the December 31, 2018, statement of financial position?
\section*{OBJECTIVE (1) (2) Exercise

Transcribed Image Text:

200 shares of Northern Company 500 shares of Montgomery Products $14.600 14.500