1. Transactions for common stock and trading investments

Zeus Investments Inc. is a regional freight company that began operations on January 1, 20Y8. The following transactions relate to trading securities acquired by Zeus Inc., which has a fiscal year ending on December 31:

20Y8
Feb.	14.	Purchased 2,100 shares of Apollo Inc. common stock at $30 per share plus a brokerage commission of $420. Apollo Inc. has 93,420 shares of common stock outstanding.
Apr.	1.	Purchased securities of Ares Inc. as a trading investment for $12,200.
June	1.	Sold 500 shares of Apollo Inc. for $31 per share less a $70 brokerage commission.
June	27.	Received an annual dividend of $0.13 per share on 1,600 shares of Apollo Inc. stock.
Oct.	15.	Sold the remaining shares of Apollo Inc. for $29 per share less a $22 brokerage commission.
Dec.	31.	The trading securities of Ares Inc. have a fair value on December 31 of $15,700.
20Y9
Mar.	14.	Purchased securities of Athena Inc. as a trading investment for $31,635.
July	30.	Sold securities of Athena Inc. that cost $7,030 for $5,740.
Dec.	31.	The fair values of the Ares Inc. and Athena Inc. securities are as follows:

Issuing Company	Cost	Fair Value
Ares Inc.	$12,200	$13,000
Athena Inc.	48,320	54,400

Required:

1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. If an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.

Date	Description	Debit	Credit
20Y8
Feb. 14	CashDividend RevenueInterest ReceivableInvestments-Apollo Inc. StockValuation Allowance for Trading InvestmentsInvestments-Apollo Inc. Stock	fill in the blank 2	fill in the blank 3
	CashDividend RevenueGain on Sale of InvestmentsInvestments-Apollo Inc. StockUnrealized Loss on Trading InvestmentsCash	fill in the blank 5	fill in the blank 6
Apr. 1	CashDividend RevenueInterest ReceivableTrading Investments-Ares Inc.Valuation Allowance for Trading InvestmentsTrading Investments-Ares Inc.	fill in the blank 8	fill in the blank 9
	CashDividend RevenueInterest ReceivableTrading Investments-Ares Inc.Valuation Allowance for Trading InvestmentsCash	fill in the blank 11	fill in the blank 12
June 1	CashDividend RevenueGain on Sale of InvestmentsInvestments-Apollo Inc. StockLoss on Sale of InvestmentsCash	fill in the blank 14	fill in the blank 15
	CashDividend RevenueGain on Sale of InvestmentsLoss on Sale of InvestmentsValuation Allowance for Trading InvestmentsGain on Sale of Investments	fill in the blank 17	fill in the blank 18
	CashGain on Sale of InvestmentsInterest ReceivableInvestments-Apollo Inc. StockLoss on Sale of InvestmentsInvestments-Apollo Inc. Stock	fill in the blank 20	fill in the blank 21
June 27	CashDividend RevenueInterest RevenueInvestments-Apollo Inc. StockLoss on Sale of InvestmentsCash	fill in the blank 23	fill in the blank 24
	CashDividend RevenueGain on Sale of InvestmentsInvestments-Apollo Inc. StockValuation Allowance for Trading InvestmentsDividend Revenue	fill in the blank 26	fill in the blank 27
Oct. 15	CashInvestments-Apollo Inc. StockUnrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsCash	fill in the blank 29	fill in the blank 30
	Dividend RevenueInterest RevenueInvestments-Apollo Inc. StockLoss on Sale of InvestmentsValuation Allowance for Trading InvestmentsLoss on Sale of Investments	fill in the blank 32	fill in the blank 33
	CashDividend RevenueInvestments-Apollo Inc. StockLoss on Sale of InvestmentsValuation Allowance for Trading InvestmentsInvestments-Apollo Inc. Stock	fill in the blank 35	fill in the blank 36
Dec. 31	CashInvestments-Apollo Inc. StockUnrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsValuation Allowance for Trading Investments	fill in the blank 38	fill in the blank 39
	CashInvestments-Ares Inc.Unrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsUnrealized Gain on Trading Investments	fill in the blank 41	fill in the blank 42
20Y9
Mar. 14	CashDividend RevenueInterest ReceivableTrading Investments-Athena Inc.Valuation Allowance for Trading InvestmentsTrading Investments-Athena Inc.	fill in the blank 44	fill in the blank 45
	CashDividend RevenueInterest ReceivableTrading Investments-Athena Inc.Valuation Allowance for Trading InvestmentsCash	fill in the blank 47	fill in the blank 48
July 30	CashDividend RevenueGain on Sale of InvestmentsTrading Investments-Athena Inc.Valuation Allowance for Trading InvestmentsCash	fill in the blank 50	fill in the blank 51
	Dividends ReceivableGain on Sale of InvestmentsInterest ReceivableTrading Investments-Athena Inc.Loss on Sale of InvestmentsLoss on Sale of Investments	fill in the blank 53	fill in the blank 54
	CashDividends RevenueInterest ReceivableLoss on Sale of InvestmentsTrading Investments-Athena Inc.Trading Investments-Athena Inc.	fill in the blank 56	fill in the blank 57
Dec. 31	CashInvestments-Apollo Inc. StockUnrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsValuation Allowance for Trading Investments	fill in the blank 59	fill in the blank 60
	CashInvestments-Athena Inc.Unrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsUnrealized Gain on Trading Investments	fill in the blank 62	fill in the blank 63

2. Prepare the Trading Investments section of the December 31, 20Y9, balance sheet for Zeus Inc.

Zeus Investments Inc. Balance Sheet (selected items) December 31, 20Y9
Current Assets:
Dividend RevenueTrading Investments (at Cost)Trading Investments (at Fair Value)Unrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsTrading Investments (at Cost)	$fill in the blank 65
Dividend RevenueTrading Investments (at Fair Value)Unrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsValuation Allowance for Trading Investments	fill in the blank 67
Trading Investments (at Cost)Trading Investments (at Fair Value)Unrealized Gain on Trading InvestmentsUnrealized Loss on Trading InvestmentsValuation Allowance for Trading InvestmentsTrading Investments (at Fair Value)		$fill in the blank 69

2. Trading invesments: missing financial statement items

JED Capital Inc., makes investments in trading securities. Selected income statement and balance sheets for the years ended December 31, Year 2 and Year 3, are as follows:

There were no dividends. Determine the missing items.

	Year 2	Year 3
Income from operations	$fill in the blank d4c616fcdf85068_1	$fill in the blank d4c616fcdf85068_2
Unrealized loss on trading investments	fill in the blank d4c616fcdf85068_3	(2,500)
Net Income	$fill in the blank d4c616fcdf85068_4	$17,200

Feedback

Operating Income-Year 2: after you have calculated requirements (Unrealized Gain (Loss)) and (Net Income). Then subtract (Unrealized Gain (Loss)) from (Net Income).

Unrealized Gain (Loss)-Year 2: Year 2 valuation allowance minus Year 1 valuation allowance. Remember when you subtract a negative number the resulting effect is to add the amount.

Net Income-Year 2: Year 2 retained earnings minus Year 1 retained earnings.

Operating Income-Year 3: The result of working backwards for Year 3 such that net income plus the absolute value of the loss is equal to operating income.

	Dec. 31, Year 1	Dec. 31, Year 2	Dec. 31, Year 3
Trading Investments, at Cost	$151,200	$179,400	$211,400
Valuation Allowance for Trading Investments	(7,400)	11,100	fill in the blank 8f0cd10f3067030_1
Trading Investments, at Fair Value	fill in the blank 8f0cd10f3067030_2	fill in the blank 8f0cd10f3067030_3	fill in the blank 8f0cd10f3067030_4
Retained Earnings	$178,200	$235,800	$fill in the blank 8f0cd10f3067030_5