Short-Term Investments The VanDankan Company has the following footnote to its financial statements: Note 4: Short-Term Investments
Question:
Short-Term Investments The VanDankan Company has the following footnote to its financial statements: Note 4: Short-Term Investments The company holds the following short-term investments at December 31 (in thousands):
Cost Market Value Trading securities U.S. government bonds $670,000 $660,000 Held-to-maturity securities Bonds issued by Beta Corporation 540,000 560,000 Available-for-sale securities Common shares of Gamma Corp. 300,000 770,000 1. Compute the amount that VanDankan would show on its balance sheet for short-term investments. 2. Suppose the market values of the three securities at the beginning of the year had been: U.S. government bonds $685,000 Bonds issued by Beta Corp. 550,000 Common shares of Gamma Corp. 710,000 Prepare journal entries to recognize the changes in market values that would be recorded in VanDankan's books during the year.
Step by Step Answer:
Introduction To Financial Accounting
ISBN: 0131479725
9th Edition
Authors: Charles T Horngren, John A Elliott