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Only need help with image 3 and 4. w the transactions.) - X More Info of outst each of Trading 2018 Purchased 4,100 shares of
Only need help with image 3 and 4.
w the transactions.) - X More Info of outst each of Trading 2018 Purchased 4,100 shares of Lexi, Inc. common stock at $14.00 per share. Delivery King plans to sell the stock within three months, when the company will need the cash for normal operations. Delivery King does not have significant influence over Lexi. Received a cash dividend of $0.10 per share on the Lexi stock investment. Sold the Lexi stock for $14.20 per share. Purchased a Rose bond for $30,000 at face value. Delivery King classifies the investment as trading and short-term. Received a $140 interest payment from Rose. Adjusted the Rose bond to its market value of $32,000. Jul. 2 Aug. 21 Sep. 16 Oct 1 Dec. 31 31 Print Done op-down list and then click Check Answer. hip of outs h of the Requirements Class ading De 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 Delivery King'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 Question Help Delivery King Corporation generated excess cash and invested in securities as follows: (Click the icon to view the transactions.) Read the requirements. (Assume the investments represent less than 20 % of ownership of outstanding voting stock.) Requirement 1. Classify each of the investments made during 2018. Classification Reason Lexi stock Rose bond Available-for-Sale Debt Investment Controlling interest equity investment Held-to-Maturity Debt Investment No Significant interest equity investment Significant interest equity investment Trading Debt Investment Delivery King 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.) Reason Classification Lexi stock Rose bond Intent is to hold for less than a year Intent is to hold for several years. Investment will be held to maturity Ownership is between 20 % and 50 % of total oustanding stock Ownership is greater than 50 % of total outstanding stock Ownership is less than 20 % of total oustanding stock Step by Step Solution
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