1.(Learning Objective 3: Design and use a bank reconciliation) The Cash account of Rampart Corp. reported a balance of $2,540 at October 31. Included were outstanding checks totaling $900 and an October 31 deposit of $400 that did not appear on the bank statement. The bank statement, which came from Tri Bank, listed an October 31 balance of $3,675. Included in the bank balance was an October 30 collection of $670 on account from a customer who pays the bank directly. The bank statement also shows a $30 service charge, $20 of interest revenue that Rampart earned on its bank balance, and an NSF check for $25.

Prepare a bank reconciliation to determine how much cash Rampart actually has at October 31.

2.

(Learning Objective 1: Account for short-term investments) Siegal Investments purchased Demer shares as a trading security on December 16 for $109,000.

1. Suppose the Demer shares decreased in value to $100,000 at December 31. Make the Siegal journal entry to adjust the Short-Term Investment account to market value.

2. Show how Siegal would report the short-term investment on its balance sheet and the unrealized gain or loss on its income statement.

(Learning Objective 1: Account for short-term investments) Newfield Corp. holds a portfolio of trading securities. Suppose that on October 15, Newfield paid $85,000 for an investment in Turok shares to add to its portfolio. At December 31, the market value of Turok shares is $96,000. For this situation, show everything that Newfield would report on its December 31 balance sheet and on its income statement for the year ended December 31