Jul. 2: Purchased

2,800 shares of

Beta, Inc. common stock at

$15.00 per share.

Postage People plans to sell the stock within three months, when the company will need the cash for normal operations.

Postage People does not have significant influence over

Beta.

Date			Accounts	Debit	Credit
Jul. 2			Equity Investments	42,000
			Cash		42,000

Part 3

Aug. 21: Received a cash dividend of

$0.40 per share on the

Beta stock investment.

Date			Accounts	Debit	Credit
Aug. 21			Cash	1,120
			Dividend Revenue		1,120

Part 4

Sep. 16: Sold the

Beta stock for

$15.50 per share.

Date			Accounts	Debit	Credit
Sep. 16			Cash	43,400
			Gain on Disposal		1,400
			Equity Investments		42,000

Part 5

Oct. 1: Purchased a

Ronco bond for

$28,000 at face value.

Postage People classifies the investment as trading and short-term.

Date			Accounts	Debit	Credit
Oct. 1			Trading Debt Investments	28,000
			Cash		28,000

Part 6

Dec. 31: Received a

$160 interest payment from

Ronco.

Date			Accounts and Explanation	Debit	Credit
Dec. 31			Cash	160
			Interest Revenue		160

Part 7

Dec. 31: Adjusted the

Ronco bond to its market value of

$30,000.

Date			Accounts	Debit	Credit
Dec. 31			Fair Value AdjustmentTrading	2,000
			Unrealized Holding GainTrading		2,000

Part 8

Requirement 3. Prepare T-accounts for the investment assets and show how to report the investments on

Postage People Corporation generated excess cash and invested in securities as follows: Requirement 3. Prepare l-accounts for the investment assets and show how to report the investments on Postage People's balance sheet at December 31, 2018. Begin by preparing T-accounts for the investment 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.) Trading Debt Investments Fair Value AdjustmentTrading ostage People Corporation generated excess cash and invested in securities as follows: (Click the icon to view the transactions.) Requirements ead the requirements. equirement 3. Prepare l-accounts for the investment assets and show how to report the in 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 Postage People's balance sheet at December 31, 2018. 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? egin by preparing T-accounts for the investment assets that are remaining at December 31, ave that T-account heading and the remaining cells blank.) Trading Debt Investments Print Done Fair Value AdjustmentTrading