Question
On 1/1/19 Tommy Inc., a calendar year company, is created with an equity investment of $191. On the same day the company purchases 1 share
On 1/1/19 Tommy Inc., a calendar year company, is created with an equity investment of $191. On the same day the company purchases 1 share of stock in another company for $106. The 1 share of stock is classified as AVAILABLE FOR SALE. On 3/31/19 the share of stock is worth $88 per share. On 6/30/19 the share of stock is worth $120 per share. On 9/30/19 the share of stock is worth $95 per share. On 12/31/19 the share of stock is worth $114 per share. The corporate tax rate is 21.00%. Quarterly revenues and expenses are provided below and are all in cash. Tommy issues financial statements quarterly.
A) Provide all journal entries and t-accounts necessary to account for this transaction on a quarterly basis (from inception of company to the end of quarter 4)
B) Create the financial statements: Income Statement, Statement of Retained Earnings and Balance Sheet, (from inception of company to the end of quarter 4)
C) Provide all journal entries and t-accounts necessary to account for this transaction on an annual basis (from inception of company to the end of the fiscal year)
D) Create the financial statements: Income Statement, Statement of Retained Earnings and Balance Sheet, (from inception of company to the end of fiscal year 1)
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