11-39 Trading Securities Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on January 1. Assume that the same portfolio was held until the end of the first quarter of the year. The mar- ket value of the portfolio was $980,160,000 at January 31, $940,000,000 at February 29, and $960,000,000 at March 31. 1. Prepare a tabulation showing the balance sheet presentation and income statement presenta- tion for monthly reporting purposes. 2. Show the journal entries for January, February, and March. 3. How would your answer to requirement 1 change if the securities were classified as available- for-sale? 11-40 Short-Tem Investments 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 Bonds issued by Beta Corp. Common shares of Gamma Corp. $670,000 540,000 600,000 $680,000 560,000 770,000 Held-to-maturity securities Available-for-sale securities 1. Compute the amount that Van Duzer would show on its halance sheet for short-term investments 11-39 Trading Securities Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on January 1. Assume that the same portfolio was held until the end of the first quarter of the year. The mar- ket value of the portfolio was $980,160,000 at January 31, $940,000,000 at February 29, and $960,000,000 at March 31. 1. Prepare a tabulation showing the balance sheet presentation and income statement presenta- tion for monthly reporting purposes. 2. Show the journal entries for January, February, and March. 3. How would your answer to requirement 1 change if the securities were classified as available- for-sale? 11-40 Short-Tem Investments 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 Bonds issued by Beta Corp. Common shares of Gamma Corp. $670,000 540,000 600,000 $680,000 560,000 770,000 Held-to-maturity securities Available-for-sale securities 1. Compute the amount that Van Duzer would show on its halance sheet for short-term investments