Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Muffin Co. has a December 31 year-end. It used some of its excess cash to buy temporary investments. The following transactions relating to these investments

Muffin Co. has a December 31 year-end. It used some of its excess cash to buy temporary investments. The following transactions relating to these investments occurred this year: Jan 15th - Bought 2,320 shares of IBM @ $120 March 1st - Bought $17,280 of GMC 6% bonds @ par March 20 - IBM declares a $5/share dividend payable March 31. December 31 - Market values of IBM shares are $130. Market value of GMC bonds are $14,000.

Required 1: What is the amount reported as revenue from dividends in the annual IncomeStatement? Required 2: What is the amount reported as Interest Revenue in the annual Income Statement? Required 3: What is the amount reported as the ending balance of the account "IBM Shares" at year end in the Balance sheet? Required 4: What is the amount reported as the ending balance of the account "GMC Bonds" at year end in the Balance sheet?

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_2

Step: 3

blur-text-image_3

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

Principles of Financial Accounting

Authors: Belverd E. Needles, Marian Powers

12th edition

978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283

More Books

Students also viewed these Accounting questions