More Info - X 2018 Purchased 3,300 shares of Prax, Inc. common stock at $12.00 per share. Captain Transfer plans to sell the stock within three months, when the company will need the cash for normal operations. Captain Transfer does not Jul. 2 have significant influence over Prax. Aug. 21 Received a cash dividend of $0.30 per share on the Prax stock investment. Sep. 16 Sold the Prax stock for $15.50 per share. Purchased a Pansy bond for $24,000 at face value. Captain Transfer Oct. 1 classifies the investment as trading and short-term. Dec. 31 Received a $260 interest payment from Pansy. Dec. 31 Adjusted the Pansy bond to its market value of $26,000. Print Done 0 Requirements - X 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 Captain Transfer's balance sheet at December 31, 2018. 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? Print Done This Question: 7 pts 9 of 31 (0 complete) Captain Transfer Corporation generated excess cash and invested in securities as follows. (Click the icon to view the transactions.) Read the requirements Requirement 1. Classify each of the investments made during 2018. Assume the Investments represent less than 20% of ownership of outstanding voting stock.) Classification Reason Prax stock Pansy bond Requirement 2. Joumalize the 2018 transactions Explanations are not required Record debits first, then credits. Exclude explanations from joumal entries. If no entry is required, select "No entry required on the first line of the Accounts column and leave the remaining cells blank) Jul 2. Purchased 3.300 shares of Prax Inc. common stock at 512.00 per share. Captain Transfer plans to sell the stock within three months, when the company will need the cash for normal operations Captain Transfer does not have significant influence over Prax. Date Accounts Debit 1 Credit Jul 2 JU Aug 21: Received a cash dividend of 50 30 per share on the Prax stock investment Date Accounts Debit Credit Aug. 21 JL 1 ill Sep. 16: Sold the Prex stock for $15.50 per share Date Accounts Debit Credit Sep 16 Oct 1: Purchased a Pansy bond for $24,000 at face value. Captain Transfer dassifies the investment as trading and short term Date Accounts Dabit Credit Oct. 1 II IN 1 Dec 31: Received a $260 interest payment from Pansy Date Accounts and Explanation Debit Credit Dec 31 SSE Requirement 2. Journalize the 2018 transactions. Explanations are not required. (Reco Jul. 2: Purchased 3,300 shares of Prax, Inc. common stock at $12.00 per share. Captai Accounts Date Jul. 2 ent. No entry required Available-for-Sale Debt Investments Cash Aug. 21: Receive Dividend Revenue Date Equity Investments Fair Value Adjustment-Available-for-Sale Aug. 21 Fair Value Adjustment-Equity Investments Fair Value AdjustmentHeld-to-Maturity Fair Value AdjustmentTrading Gain on Disposal Held-to-Maturity Debt Investments Sep. 16: Sold the Interest Revenue Date Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Sep. 16 Unrealized Holding Gain-Equity Investments Unrealized Holding GainHeld-to-Maturity Unrealized Holding GainTrading Unrealized Holding LossAvailable-for-Sale Unrealized Holding LossEquity Investments Oct. 1: Purchase Unrealized Holding LossHeld-to-Maturity Date Unrealized Holding Loss-Trading sifies Oct. 1 Dec. 31: Adjusted the Pansy bond to its market value of $26,000 Date Accounts Debit Credit Dec. 31 Requirement 3. Prepare T-accounts for the investment assets and show how to report the investments on Captain Transfer'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.) Use the partial balance sheet below to show how to report the investments on Captain Transfer's 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 a zero. Captain Transfer Corporation Balance Sheet (Partial) December 31, 2018 Current Assets Long-Term Assets: 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
