Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

no im not paying you for this question 2024 Jul. 2 Purchased 4,400 shares of Nexxt, Inc. common stock at $13.00 per share. Captain Transfer

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
no im not paying you for this question
2024 Jul. 2 Purchased 4,400 shares of Nexxt, Inc. common stock at $13.00 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 Nexxt. Aug. 21 Received a cash dividend of $0.30 per share on the Nexxt stock investment. Sep. 16 Sold the Nexxt stock for $13.80 per share. Oct. 1 Purchased a Ronco bond for $28,000 at face value. Captain Transfer classifies the investment as trading and short-term. Dec. 31 Received a $300 interest payment from Ronco. Dec. 31 Adjusted the Ronco bond to its market value of $32,000. Requirement 1. Classify each of the investments made during 2024. (Assume the investments represent less than 20\% of ownership of outstanding voting stock.) Requirement 2. Journalize the 2024 transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal 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 4,400 shares of Nexxt, Inc. common stock at $13.00 per share. Captain Transfic 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 Nexxt. Aug. 21: Received a cash dividend of $0.30 per share on the Nexxt stock investment. Sep. 16: Sold the Nexxt stock for $13.80 per share. Oct. 1: Purchased a Ronco bond for $28,000 at face value. Captain Transfer classifies the investment as trading and short-term. Oct. 1: Purchased a Ronco bond for $28,000 at face value. Captain Transfer classifies the investment as trading and short-term. Dec. 31: Received a $300 interest payment from Ronco. Dec. 31: Adjusted the Ronco bond to its market value of $32,000. Dec. 31: Adjusted the Ronco bond to its market value of $32,000. 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, 2024. Begin by preparing T-accounts for the investment assets that are remaining at December 31,2024 . (Select the investment account first, then the fair value adjustment account. If no fair value account is needed, leave that T-ac heading and the remaining cells blank.) Captain Transfer Corporation generated excess cash and invested in securities as follows: (Click the icon to view the transactions.) Read the requirements. Use the partial balance sheet below to show how to report the investments on Captain Transfer's balance sheet at December 31, 2024. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.) 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

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

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions