CH 12 Information: Use the following to complete the CH 12 tab of the excel workbook provided on Blackboard.

Browning Underwriting and Recapitalization Professionals (BURP) buys and sells securities in short-term periods. The following transactions relate to BURP activity in December of 2019, which has a fiscal year end of December 31. All of the following securities meet the criteria to be classified as trading securities and no other trading securities were held by BURP prior to December of 2019.

Dec 4 Purchased LRB Corp Bonds for $8 million

Dec 7 Purchased 2 million shares of Cupcake International for $14 million

Dec 10 Sold the LRB Corp Bonds for $8.5 million

Dec 15 Purchased US Treasury Bills for $47 million and US Treasury Bonds for $85 million

Dec 17 Sold 1.5 million shares of Cupcake International for $12 million

Dec 21 Sold the US Treasury Bills for $43 million

Dec 23 Sold the US Treasury Bonds for $82 million

Dec 27 Received payment of cash dividends from Cupcake International common shares for $250,000

Dec 31 Recorded any necessary adjusting/closing entries relating to the investments. Market price of Cupcake International was $10 per share.

1. Prepare all appropriate journal entries for December 2019 in the excel template on the CH 12 tab.
2. Calculate the total to be reported on the 2019 Balance Sheet for short-term investments.
3. Calculate the total impact to profit reported on the 2019 Income Statement that is a result of the investment activity (i.e., the impact to profit for the investment activity).

1) Record all journal entries by day for December of 2019

2) Calculate the total to be reported on the 2019 Balance Sheet for short-term investments

Account title

Dr

Cr

Dec. 4

Dec. 7th

3) Calculate the total impact to profit reported on the 2019 Income Statement as a result of the investment activity