Dream Corporation generated excess cash and invested in securities as follows:

Requirement 1. Classify each of the investments made during 2018. (Assume the investments represents less than 20% of ownership of outstanding voting stock.)

(Classifications and reasons options)

Requirement 2. Joirnalize the 2018 transactions. Explanations are not required ( record debits first, the. Credit. Exclude explanations from journal entries. If no entry is required select no entry required on the first line of Accouts column and leave the remaing cells blank.)

July 2: Purchased 3,000 shares of Micro, Inc. common stock at $11.00 per share. During plans to sell the stock within three months, when the company will need the cash for normal operations. Dream dose not have significant influence over Micro.

(Possible accounts)

Requirement 3. Prepare T-accounts for the investments assets that are remaining at December 31,2018 (Select the investment account first, then the fair value adjustment account. If no fair value account is needed, leave that T-account heading and the remaining cells blank.)

Use the partial balance sheet below to show how to report the investments on Dreams balance sheet at December 31, 2018. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter zero.)

Requirement 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported?

The unrealized holding gain (loss) associated with the trading debt investment is included in the ________ (a. Accumulated other comprehensive income section on the balance sheet b. Balance sheet as a contra account to the trading debt investment account c. Revenues section of the income statement d. Other income and (expenses) section on the income statement

Requirements 1. Classify each of the investments made during 2018. (Assume the equity investments represent less than 20% of ownership of outstanding voting stock.) 2. Journalize the 2018 transactions. Explanations are not required. 3. Prepare T-accounts for the investment assets, and show how to report the investments on Dream's balance sheet at December 31, 2018. 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? Requirement 1. Classify each of the investments made during 2018 (Assume the investments represent less than 20% of ownership Classification Reason Micro stock Tycon bond Requirement 1. Classify each of the investments made dunng 2018 (Assume the investments represent less than 20% of ownership of a Classification Reason Micro stock Tycon bond Requirement Jul. 2. Purchas Held-to-Maturity Debt Investment Available-for-Sale Debt Investment ns are not required. (Record debits first, then credits. Exclude explanations t $11.00 per share. Dream plans to sell the stock within three months, wher Controlling interest equity investment Date No Significant interest equity investmert Debit Credit Significant interest equity investment Trading Debt Investment Jul. 2 Requirement 1, Classify each of the investments made dunng 2018. Assume the investments represent less than 20% of ownership of out Classification Reason Micro stock Tycon bond Requirement 2. Journalize the 2018 transactions. Explanatio Intent is to hold for less than a year Intent is to hold for several years ations fro 2 Purchased 3,000 shares of Micro, Inc. common stock a Investment will be held to maturity i, when th ownership is between 20% and 50% of total oustanding stock. Ownership is greater than 50% of total outstanding stock. Date Accounts Jul. 2 : Ownership is less than 20% of total oustanding stock. Jul. 2: Purchased 3,000 shares of Micro, Inc. common stock at $11.00 per share. Dream plans to sell the stock within Date Accounts Debit Credit Jul. 2 Aug. 21: Received a cash dividend of $0.40 per share on the Micro stock investment Date Accounts Debit Credit Aug. 21 Sep. 16: Sold the Micro stock for $13.50 per share Date Accounts Debit Credit Sep. 16 Oct. 1: Purchased a Tycon bond for $36,000 at face value. Dream classifies the investment as trading and short-term Accounts Debit Credit Date Oct. 1 Dec. 31: Received a $240 interest payment from Tycon. Date Accounts and Explanation Debit Credit Dec. 31 Dec. 31: Adjusted the Tycon bond to its market value of $39,000 Debit Credt Date Accounts Dec. 31 Requirement 3. Prepare T-accounts for the investment assets and show Begin by preparing T-accounts for the investment assets that are remainir Requirement 3. Prepare T-accounts for the investment assets and show how to re Begin by preparing T-accounts for the investment assets that are remaining at Dec Available-for-Sale Debt Investments Equity Investments Held-to-Maturity Debt Investments Trading Debt Investments investment assets and show how to Pep Requirement 3. Prepare T-accounts for the Begin by preparing T-accounts for the investment assets that are remaining at Decem Jul. 2 Sep. 16 Oct. 1 Dec. 31 Use the partial balance sheet below to show how to report the investments on Dream's balance Dream Corporation Balance Sheet (Partial) December 31, 2018 Current Assets: Long-Term Assets: Accumulated Other Comprehensive Income (Loss) Available-for-Sale Debt Investments (at cost) Available-for-Sale Debt Investments (at fair value) Dividend Revenue Equity Investments . Held-to-Maturity Debt Investments Investment Revenue Trading Debt Investments (at cost) Trading Debt Investments (at fair value) Unrealized Holding Gain (Loss) Available-for-Sale Unrealized Holding Gain (Loss) Equity Investments Unrealized Holding Gain (Loss) Held-to-Maturity Unrealized Holding Gain (Loss)-Trading estments on Dream's balance shee Long-Term Assets: Requirements 1. Classify each of the investments made during 2018. (Assume the equity investments represent less than 20% of ownership of outstanding voting stock.) 2. Journalize the 2018 transactions. Explanations are not required. 3. Prepare T-accounts for the investment assets, and show how to report the investments on Dream's balance sheet at December 31, 2018. 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? Requirement 1. Classify each of the investments made during 2018 (Assume the investments represent less than 20% of ownership Classification Reason Micro stock Tycon bond Requirement 1. Classify each of the investments made dunng 2018 (Assume the investments represent less than 20% of ownership of a Classification Reason Micro stock Tycon bond Requirement Jul. 2. Purchas Held-to-Maturity Debt Investment Available-for-Sale Debt Investment ns are not required. (Record debits first, then credits. Exclude explanations t $11.00 per share. Dream plans to sell the stock within three months, wher Controlling interest equity investment Date No Significant interest equity investmert Debit Credit Significant interest equity investment Trading Debt Investment Jul. 2 Requirement 1, Classify each of the investments made dunng 2018. Assume the investments represent less than 20% of ownership of out Classification Reason Micro stock Tycon bond Requirement 2. Journalize the 2018 transactions. Explanatio Intent is to hold for less than a year Intent is to hold for several years ations fro 2 Purchased 3,000 shares of Micro, Inc. common stock a Investment will be held to maturity i, when th ownership is between 20% and 50% of total oustanding stock. Ownership is greater than 50% of total outstanding stock. Date Accounts Jul. 2 : Ownership is less than 20% of total oustanding stock. Jul. 2: Purchased 3,000 shares of Micro, Inc. common stock at $11.00 per share. Dream plans to sell the stock within Date Accounts Debit Credit Jul. 2 Aug. 21: Received a cash dividend of $0.40 per share on the Micro stock investment Date Accounts Debit Credit Aug. 21 Sep. 16: Sold the Micro stock for $13.50 per share Date Accounts Debit Credit Sep. 16 Oct. 1: Purchased a Tycon bond for $36,000 at face value. Dream classifies the investment as trading and short-term Accounts Debit Credit Date Oct. 1 Dec. 31: Received a $240 interest payment from Tycon. Date Accounts and Explanation Debit Credit Dec. 31 Dec. 31: Adjusted the Tycon bond to its market value of $39,000 Debit Credt Date Accounts Dec. 31 Requirement 3. Prepare T-accounts for the investment assets and show Begin by preparing T-accounts for the investment assets that are remainir Requirement 3. Prepare T-accounts for the investment assets and show how to re Begin by preparing T-accounts for the investment assets that are remaining at Dec Available-for-Sale Debt Investments Equity Investments Held-to-Maturity Debt Investments Trading Debt Investments investment assets and show how to Pep Requirement 3. Prepare T-accounts for the Begin by preparing T-accounts for the investment assets that are remaining at Decem Jul. 2 Sep. 16 Oct. 1 Dec. 31 Use the partial balance sheet below to show how to report the investments on Dream's balance Dream Corporation Balance Sheet (Partial) December 31, 2018 Current Assets: Long-Term Assets: Accumulated Other Comprehensive Income (Loss) Available-for-Sale Debt Investments (at cost) Available-for-Sale Debt Investments (at fair value) Dividend Revenue Equity Investments . Held-to-Maturity Debt Investments Investment Revenue Trading Debt Investments (at cost) Trading Debt Investments (at fair value) Unrealized Holding Gain (Loss) Available-for-Sale Unrealized Holding Gain (Loss) Equity Investments Unrealized Holding Gain (Loss) Held-to-Maturity Unrealized Holding Gain (Loss)-Trading estments on Dream's balance shee Long-Term Assets