AutoSave OFF Chap 15 Graded Assignment (Template) a go Share Comments Insert v Format v v Sort & Filter Find & Select Analyze Data Sensitivity 1 7 Cell Conditional Format Formatting as Table Styles Delete J K L M N 0 P Q Home Insert Draw Page Layout Formulas Data Review View Tell me G X [A Calibri (Body) 14 Paste BI U v A A A Wrap Text General Merge & Center $%9 L15 fx A B C D E F G H 5 6 7 8 2018 Jul. 2 9 10 11 Aug. 21 12 Sep. 16 13 Oct. 1 14 15 Received a $600 interest payment from Purple. 16 17 18 19 20 21 2. Journalize the 2018 transactions. Explanations are not required. 22 23 24 Captain Transfer Corporation generated excess cash and invested in securities as follows: Dec. 31 31 Purchased 4,200 shares of Naradon, Inc. common stock at $13.00 per share. Captain Transfer plans to sell the stock within three months, when the company will need the cash for normal operations. Captain Transfer does not have significant influence over Naradon. Received a cash dividend of $0.40 per share on the Nardon stock investment. Sold the Naradon stock for $13.70 per share. Purchased a Purple bond for $40,000 at face value. Captain Transfer classifies the investment as trading and short-term. Adjusted the Purple bond to its market value of $44,000. Requirements 1. Classify each of the investments made during 2018. (Assume the equity investments represent less than 20% of ownership of outstanding voting stock.) 3. Prepare T-accounts for the investment assets, and show how to report the investments on Captain Transfer's balance sheet at December 31, 2018. 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? 25 26 27 Ready Requirement 1. Sheet1 + 150% AutoSave OFF Chap 15 Graded Assignment (Template) Home Insert Draw Page Layout Formulas Data Review View Tell me X [A Calibri (Body) 14 Paste BI U v A A A Wrap Text General Merge & Center $%9 .00 +0 L15 25 fx A B C D E F G H 26 27 28 29 30 31 Requirement 1: a) Investment in Naradon, Inc stock: Type of investment: Degree of influence: 32 33 b) Investment in Purple: 34 35 Type of investment: Classification: 36 37 38 Requirement 2: 39 40 Total cost = Number of shares x price per share 41 42 Total dividend received = Number of shares x dividend per share 43 44 45 46 Total cash received = Number of shares x cash received per share Gain on disposal = Total cash received - total cost Sheet1 + Ready J a go Share Comments Insert v Format v v Sort & Filter Find & Select Analyze Data Sensitivity 1 7 Cell Conditional Format Formatting as Table Styles Delete K L M N P 150% AutoSave OFF Chap 15 Graded Assignment (Template) Home Insert Draw Page Layout Formulas Data Review View Tell me a go Share Comments X Calibri (Body) 14 A A Wrap Text General [A 1 7 Delete Paste BI U A Merge & Center $%9 .00 +0 Conditional Format Formatting as Table Styles Cell Insert v Format v v Sort & Filter Find & Select Analyze Data Sensitivity L15 fx A B C D E F G H J K L M N P Q 38 39 40 41 42 Requirement 2: Total cost = Number of shares x price per share Total dividend received = Number of shares x dividend per share 43 44 Total cash received = Number of shares x cash received per share 45 46 Gain on disposal = Total cash received - total cost 47 48 Unrealized holding gain = Total fair value - total cost 49 50 51 Date Account & Explanations Post. Ref. Debit Credit 52 53 54 55 56 57 58 59 Sheet1 + Ready 150% AutoSave OFF Chap 15 Graded Assignment (Template) a go Share Comments Insert v Format v v Sort & Filter Find & Select Analyze Data Sensitivity 1 7 Cell Conditional Format Formatting as Table Styles Delete J K L M N 0 P Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) 14 [A Paste BI U v A A A Wrap Text General Merge & Center $%9 .00 +0 L15 fxx A B C D E F G H 80 81 82 Requirement 3: Equity Investments 83 July 2 84 Bal. Fair Value Adjustment - Trading Sep. 16 Dec. 31 Bal. 85 86 87 88 Trading Debt Investments 89 Oct. 1 90 Bal. 91 92 93 94 95 CAPTAIN TRANSFER CORPORATION Balance Sheet (Partial) December 31, 2018 96 97 Current Assets: 98 Trading Debt Investments (at fair value; cost $40,000) 99 100 101 Sheet1 + Ready 150% AutoSave OFF Chap 15 Graded Assignment (Template) $%9 1 * * 7 * Cell Conditional Format Formatting as Table Styles Home Insert Draw Page Layout Formulas Data Review View Tell me X [A Calibri (Body) 14 A A Wrap Text General Paste BI U v A Merge & Center L15 fx A B C D E F G H 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 Current Assets: Trading Debt Investments (at fair value; cost $40,000) Requirement 4: Unrealized holding gain associated with trading debt investment is reported in income statement under Sheet1 + Ready Share Comments Insert Delete Format v v Sort & Filter Find & Select Analyze Sensitivity Data K L M N O P 150%