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In January 2022, the management of Cullumber Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During
In January 2022, the management of Cullumber Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred.
Jan. | 1 | Purchased 70 $1,000, 9% TRC bonds for $70,000. Interest is payable annually on December 31. | |
Feb. | 1 | Purchased 1,230 shares of LAF common stock for $54,120. | |
Mar. | 1 | Purchased 530 shares of NCL common stock for $20,670. | |
July | 1 | Received a cash dividend of $0.80 per share on the LAF common stock. | |
Aug. | 1 | Sold 215 shares of LAF common stock at $43 per share. | |
Sept. | 1 | Received $2 per share cash dividend on the NCL common stock. | |
Dec. | 31 | Received the annual interest on the TRC bonds. | |
31 | Sold the TRC bonds for $71,998. |
At December 31, the fair values of the LAF and NCL common stocks were $40 and $32 per share, respectively. These stock investments by Cullumber Company provide less than a 20% ownership interest.
Show the balance sheet presentation of investment securities at December 31, 2022.
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