P15-19A

ldy been recorded P15-19A Classifying and accounting for debt and equity investments Jerway Corporation generated ecess cash and invested in securities Learni 2018 CR $5.38 ul. 2 Purchased 4,200 shares of Pogo, Inc. common stock at $12.00 per share. r all Jetway plans to sell the stock within three months, when the company will need the cash for normal operations. Jetway does not have significant influence over Pogo Aug. 21 Sep. 16 Oct. 1 Received a cash dividend of $0.80 per share on the Pogo stock investment Sold the Pogo stock for $13.40 per share. Purchased a Violet bond for $20,000 at face value. letway classifies the investment as trading and short term. Dec. 31 Received a $100 interest payment from Violet 31 Adjusted the Violet bond to its market value of $22,000 Requirements 1. Classify each of the investments made during 2018. (Assume the equity invest- ments represent less than 20% of ownership of outstanding voting stock) 2. Journalize the 2018 trasactions. Explanations are not required. 3. Prepare T-accounts for the investment assets, and show how to report the invest ments on Jetway's balance sheet at December 31, 2018. Where is the unrealized holding gain or loss associated with the trading debt investment reported? 4