Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jones Inc. had the following transactions during 2012: -Purchased 10,000 shares of XYZ Inc. for $4 each. The investment was accounted for as trading securities.

Jones Inc. had the following transactions during 2012: -Purchased 10,000 shares of XYZ Inc. for $4 each. The investment was accounted for as trading securities. -Purchased 5,000 shares of ABC Inc. for $7.50 each. The investment was accounted for as available-for-sale securities. During 2012, XYZ paid $0.20 in dividends per share and ABC paid $.50 in dividends per share. As of December 31, 2012, the fair market value of XYZ Inc. was $4.25 per share and the fair market value of ABC Inc. was $6.75 per share. 1. What will be reported on the income statement? 2. What will be reported as the balance in the investment accounts? 3. What amount will be reported as other comprehensive income? solve only if you are 100% sure.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Currency Internationalization Global Experiences And Implications For The Renminbi

Authors: Wensheng Peng, Chang Shu

2nd Edition

0230580491, 9780230580497

More Books

Students also viewed these Accounting questions