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 L15 fx A B C D E G H 4 7 2018 8 Jul. 3 9 10 11 12 Aug. 21 Sep. 16 13 14 15 16 17 18 19 20 Captain Transfer Corporation generated excess cash and invested in securities as follows: Ocl. 1 Dee. 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 Namdon stock for $13.70 per share. Purchased a Purple bond for $40,000 at face value. Caplain Transfer classifies the investment as trading and short-term. Received a $600 interest payment from Purple. Adjusted the Purple bond to its market value of $14,000. Requirements 1. Classify each of the investments made during 2018. (Asgame the equity investments represent less dan 20% of ownership of outstanding voting stock.) 21 2. Journalize the 2018 transactions. Explanations are not required. 22 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. 23 24 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? 25 26 27 28 29 30 31 32 33 34 35 Requirement 1: a) Investment in Naradon, Inc stock: Type of investment: Degree of influence: b) Investment in Purple: Type of investment: Classification: 36 37 Ready Danirament 3. Sheet1 + a go Share Comments Format v v Sort & Filter Find & Select Analyze Data Sensitivity 1 7 Cell Conditional Format Formatting as Table Styles Insert v Delete K M N 0 P Q R 5 T V W X Y 100% 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 L15 A B c D E G H 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 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Sheet1 + Ready a go Share Comments Insert v v Sort & Filter Find & Select Analyze Data Sensitivity 1 7 Cell Conditional Format Formatting as Table Styles Delete Format v K M N 0 P Q R S T V W X Y Post. Ref. Debit Credit 100% AutoSave OFF Chap 15 Graded Assignment (Template) a go Share Comments 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 1 7 Conditional Format Cell Formatting as Table Styles Delete Format v Insert v v Sort & Filter Find & Select Analyze Data Sensitivity L15 fx A B C D E F G H J K M N 0 P Q R 5 T V W X Y 78 79 80 Requirement 3: 81 82 Equity Investments Fair Value Adjustment - Trading 83 July 2 Sep. 16 Dec. 31 84 Bal. 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) 99 100 101 102 Requirement 4: 103 104 105 Unrealized holding gain associated with trading debt investment is reported in income statement under 106 107 108 109 110 111 Ready Sheet1 + 100 7