Trading investments (at fair value) Journalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. In your computations, round per share amounts to two decimal places. Scofield Financial Co. is a regional insurance company that began operations on January 1, 2016. The following transactions relate to trading securities acquired by Scofield Financial Co., which has a fiscal year ending on December 31: Record these transactions on page 10: 2016 | | | Mar. | 14 | Purchased 4,900 shares of Wilkomm Inc. as a trading security at $35 per share plus a brokerage commission of $490. | Apr. | 24 | Purchased 1,800 shares of McMarsh Inc. as a trading security at $47 plus a brokerage commission of $198. | Jun. | 1 | Sold 2,550 shares of Wilkomm Inc. for $33 per share less a $95 brokerage commission. | | 30 | Received an annual dividend of $0.30 per share on Wilkomm Inc. stock. | Dec. | 31 | The portfolio of trading securities was adjusted to fair values of $33 and $46 per share for Wilkomm Inc. and McMarsh Inc., respectively. | Record these transactions on page 11: 2017 | | | Apr. | 4 | Purchased 4,800 shares of Daley Inc. as a trading security at $26 per share plus a $240 brokerage commission. | Jun. | 28 | Received an annual dividend of $0.40 per share on Wilkomm Inc. stock. | Sep. | 9 | Sold 960 shares of Daley Inc. for $28 per share less a $30 brokerage commission. | Dec. | 31 | The portfolio of trading securities had a cost of $267,315 and a fair value of $346,935, requiring a debit balance in Valuation Allowance for Trading Investments of $79,620 ($346,935 -$267,315). Thus, the credit balance from December 31, 2016, is to be adjusted to the new balance. | | Required: | A. | Journalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. | B. | Prepare the investment-related current asset balance sheet presentation for Scofield Financial Co. on December 31, 2017. | C. | How are unrealized gains and losses on trading investments presented in the financial statements? * | Refer to the information given and the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. | | X Chart of Accounts CHART OF ACCOUNTS | Scofield Financial Co. | General Ledger | | ASSETS | 110 | Cash | 111 | Petty Cash | 120 | Accounts Receivable | 121 | Allowance for Doubtful Accounts | 131 | Notes Receivable | 132 | Interest Receivable | 141 | Merchandise Inventory | 145 | Office Supplies | 146 | Store Supplies | 151 | Prepaid Insurance | 161 | Investments-Wilkomm Inc. | 162 | Investments-McMarsh Inc. | 163 | Investments-Daley Inc. | 165 | Valuation Allowance for Trading Investments | 166 | Valuation Allowance for Available-for-Sale Investments | 181 | Land | 191 | Store Equipment | 192 | Accumulated Depreciation-Store Equipment | 193 | Office Equipment | 194 | Accumulated Depreciation-Office Equipment | | LIABILITIES | 210 | Accounts Payable | 221 | Notes Payable | 231 | Interest Payable | 241 | Salaries Payable | 251 | Sales Tax Payable | | EQUITY | 311 | Common Stock | 312 | Paid-In Capital in Excess of Par-Common Stock | 321 | Preferred Stock | 322 | Paid-In Capital in Excess of Par-Preferred Stock | 331 | Treasury Stock | 332 | Paid-In Capital from Sale of Treasury Stock | 340 | Retained Earnings | 350 | Unrealized Gain (Loss) on Available-for-Sale Investments | 351 | Cash Dividends | 352 | Stock Dividends | 390 | Income Summary | | | REVENUE | 410 | Sales | 611 | Interest Revenue | 612 | Dividend Revenue | 631 | Gain on Sale of Investments | 641 | Unrealized Gain on Trading Investments | | EXPENSES | 511 | Cost of Merchandise Sold | 512 | Bad Debt Expense | 515 | Credit Card Expense | 516 | Cash Short and Over | 520 | Salaries Expense | 531 | Advertising Expense | 532 | Delivery Expense | 533 | Repairs Expense | 534 | Selling Expenses | 535 | Rent Expense | 536 | Insurance Expense | 537 | Office Supplies Expense | 538 | Store Supplies Expense | 561 | Depreciation Expense-Store Equipment | 562 | Depreciation Expense-Office Equipment | 590 | Miscellaneous Expense | 710 | Interest Expense | 731 | Loss on Sale of Investments | 741 | Unrealized Loss on Trading Investments | | X Amount Descriptions Amount Descriptions | | Increase in retained earnings | | Net income | | Net loss | | Other comprehensive income (loss) | | Other income (loss) | | Retained earnings, December 31, 2017 | | Retained earnings, January 1, 2017 | | Trading investments (at cost) | | Trading investments (at fair value) | | X Journal Journalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. In your computations, round per share amounts to two decimal places. PAGE 10PAGE 11 JOURNAL | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | | | | | 10 | | Adjusting Entries | | | | 11 | | | | | | 12 | | | | | | X Balance Sheet Prepare the investment-related current asset balance sheet presentation for Scofield Financial Co. on December 31, 2017. Refer to the information given and the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. How are unrealized gains and losses on trading investments presented in the financial statements? Unrealized gains and losses on trading investments are reported on the . For 2016, Scofield Financial Co. would have reported an . For 2017, Scofield Financial Co. would have reported an . If unrealized gains and losses were significant for Scofield Financial, then they would be . |