On January 1, 20x1, JME invested in the common stock of Hunting, Inc.Certain data for 20X1 and 20X2 are as follows -

year. # shares purchased. Cost per share Cash dividend - 12/1 Market price per share on 12/31

20X1 2,800 $42 $1.50 $46.00

20X2 n/a n/a $1.00 $50.00

1 - JME has no other investment securities.

2 - These are TRADING SECURITIES under ASC 320 - i.e., securities bought and held principally for the purpose of selling them in the near term. Trading securities can include both equity and debt securities.

3 - JME applies ASC 320 in both 20X1 and 20X2

4 - No investments were sold in 20X1

5 - On 2/27/X2 JME sold800shares for cash at a price of$47.00per share

6 - Prior to recording the sale of any security, JME records an adjustment to the value of its whole portfolio of trading securities

7 - You may ignore taxes

1 - In the table shown on the next page, you are to record all journal entries, if required, on the dates indicated.Some of the account titles JME uses include -

Cash

Investment in Equity Securities

Dividend Income

Gain on Investment (unrealized-net income)

Loss on Investment (unrealized-net income)

Fair Value adjustment

2- Show computations where applicable.

3 - Following are amounts from the F/S of JME, Inc.BEFOREgiving consideration to the securities transactions above

Item

20X1 20X2

Net Income

140,000 120,000

Cash flow from operating activities

190,000. 170,000

Cash flow from investing activities

<105,000>. <89,000>

Cash flow from financing activities

65,000. 80,000

You are to restate the above amountsAFTERconsideration to the securities transactions above

Item

20X1. 20X2

Net Income

?? ???

Cash flow from operating activities

?? ???

Cash flow from investing activities

?? ??

Cash flow from financing activities

?? ??