Question
During 2016, Dana Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Danas 2016 marketable security transactions:
During 2016, Dana Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Danas 2016 marketable security transactions:
Feb. 3 | Purchased 3,000 shares of Blair Company common stock for $12 per share. |
Apr. 1 | Purchased $20,000 face value of Solomon Inc. 12% bonds at par plus accrued interest; interest on the bonds is payable each June 30 and December 31. |
Jun. 30 | Received the semiannual interest on the Solomon bonds and a $0.25 per share dividend on the Blair common stock. |
Sept. 1 | Purchased 4,000 shares of Woodman Corporation common stock for $22 per share. |
Nov. 1 | Purchased $30,000 face value of Edwards Company 11% bonds at par plus accrued interest; interest on the bonds is payable each June 1 and December 1. |
Dec. 1 | Received the interest on the Edwards bonds and sold the bonds for $30,300. |
Dec. 30 | Received a $0.25 dividend per share on the Blair common stock and sold all the shares for $35,300. |
Dec. 31 | Received the interest on the Solomon bonds. The following information is available concerning the year-end market prices: |
Security | Quoted Market |
---|---|
Solomon 12% bonds | $20,200 |
Woodman common (per share) | 23 |
Required:
1. | Record Danas investment transactions for 2016. |
2. | Show the items of income or loss on temporary investments Dana reports on its 2016 income statement. |
3. | Show the carrying value of Danas investment account on its December 31, 2016, balance sheet. |
Record Danas investment transactions for 2016. Additional Instructions
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GENERAL JOURNAL
Show the items of income or loss on temporary investments Dana reports on its 2016 income statement. Additional Instructions
Dana Company |
Partial Income Statament |
For the Year Ended December 31, 2016 |
Show the carrying value of Danas investment account on its December 31, 2016, balance sheet. Additional Instructions
Dana Company |
Partial Balance Sheet |
December 31, 2016 |
1 | Current assets: |
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