The balance sheet of Silver Developments Corp. at the start the year included these balances: Short-term investments $ 280,000 Investments in significantly influenced and other companies 2,800,000 Assume the company completed the following investment transactions during 2020: (Click the icon to view list of transactions.) Required Requirement 1. Record the transactions in the general journal of Silver Developments Corp. Mar. 3. Purchased 9,500 common shares as a short-term investment, paying $28.50 per share, plus brokerage commission of $800. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Mar. 3 Mar. 4. Purchased additional shares in a company that is significantly influenced by Silver Developments Corp. at a cost of $600,000, plus brokerage commission of $4,900. Journal Entry Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question. Silver Transactions - ts Required x cantly id comple view 1. Record the transactions in the general journal of Silver Developments Corp. 2. Post entries to the Investments in Significantly Influenced and Other Companies T-account, and determine its balance at December 31, 2020. 3. Post entries to the Short-Term Investments T-account and determine its balance at December 31, 2020 Assuming the market value of the short-term investment portfolio is $535,000 at December 31, 2020, show how Silver Corp. would report short-term investments and investments in significantly influenced and other companies on the December 31, 2020, balance sheet. rd the Mar. 3 Purchased 9,500 common shares as a short-term investment, paying $28.50 per share, plus brokerage commission of $800. 4 Purchased additional shares in a company that is significantly influenced by Silver Developments Corp. at a cost of $600,000, plus brokerage commission of $4,900. May 14 Received semi-annual cash dividend of $2.50 per share on the short-term investment purchased March 3. Jun. 15 Received cash dividend of $55,000 from a significantly influenced company. Aug. 28 Sold the short-term investment (purchased on March 3) for $24.50 per share, less brokerage commission of $900. Oct. 24 Purchased other short-term investments for $355,000, plus brokerage commission of $475. Dec. 15 Received a cash dividend of $45,000 from a significantly influenced company. 31 Received annual reports from significantly influenced companies. Their total net income for the year was $1,400,000. Of this amount, Silver Developments Corp.'s proportion is 30 percent. 00 con Rec Print Done Print Done ditional plus brokerage commission of $4,900. Journal Entry Accounts Debit Credit Mar. 3. Purchased 9,500 common shares as a short-term investment, paying $28.50 per share, plus brokerage commission of $800. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Mar. 3 Mar. 4. Purchased additional shares in a company that is significantly influenced by Silver Developments Corp. at a cost of $600,000, plus brokerage commission of $4,900. Journal Entry Date Accounts Debit Credit Mar. 4. Choose from any list or enter any number in the input fields and then continue to the next question. May 14. Received semi-annual cash dividend of $2.50 per share on the short-term investment purchased March 3. Journal Entry Date Accounts Debit Credit May 14 Jun. 15. Received cash dividend of $55,000 from a significantly influenced company. Journal Entry Date Accounts Debit Credit Jun. 15 Aug. 28. Sold the short-term investment (purchased on March 3) for $24.50 per share, less brokerage commission of $900 Journal Entry Date Accounts Debit Credit Aug. 28 Oct. 24. Purchased other short-term investments for $355,000, plus brokerage commission of $475. Journal Entry Date Accounts Debit Credit Dec. 15. Received a cash dividend of $45,000 from a significantly influenced company. Journal Entry Date Accounts Debit Credit Dec. 15 Dec. 31. Received annual reports from significantly influenced companies. Their total net income for the year was $1,400,000. Of this amount, Silver Developments Corp.'s proportion is 30 percent. Journal Entry Date Accounts Debit Credit Dec. 31 Requirement 2. Post entries to the Investments in Significantly Influenced and Other Companies T-account, and determine its balance at December 31, 2020. (Leave any unused cells blank.) Investments in Significantly Influenced and Other Companies Requirement 3. Assume the beginning balance of Short-Term Investments was at a cost of $280,000. Post entries to the Short-Term Investments T-account and determine its balance at December 31, 2020. (Leave any unused cells blank.) Short-Term Investments Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. Assuming the market value of the short-term investment portfolio is $535,000 at December 31, 2020, show how Silver Developments Corp. would report short-term investments and investments in significantly influenced and other companies on the December 31, 2020, balance sheet. Silver Developments Corp. Balance Sheet (partial) December 31, 2020 Current Assets Cash $XXX Short-term investments, at fair value XXX Accounts receivable (net) Total current assets XXX Investments in significantly influenced and other companies
