The largest current asset on Waverly Corporation's balance sheet at December 31, 2016, is Investment in Trading Securities. The investments consist of stock in other corporations and cost Waverly $8.660 (amounts in millions). At the balance sheet date, the fair value of these securities is $9,000. Suppose Waverly holds the stock investments in the hope of trading them actively for a profit and converting them to cash within four to six months. Read the requirements a. How will Waverly classify the investments? Waverly will classify the investments as b. What will Waverly report on the balance sheet at December 31, 2016? (Enter amount in millions as provided to you in the problem statement.) Waverly Company Balance Sheet (partial) December 31, 2016 Requirements In Millions of $ c. What will Waverly report on its 2016 income statement? {Enter amount in millions as provided to you in the problem statement.) a. How will Waverly classify the investments? b. What will Waverly report on the balance sheet at December 31, 2016? c. What will Waverly report on its 2016 income statement? d. Show a T-account for Investment in Trading Securities. 6. Suppose Waverly sells the investment securities for $8.700 in 2017, Joumalize the sale and then show the Investment in Trading Securities T-account as it appears after the sale. Waverly Company Income Statement (partial) December 31, 2016 In Millions of $ Print Done Choose from any list or enter any number in the input fields and then continue to the next question. ? d. Show a T-account for Investment in Trading Securities at December 31, 2016. (Enter amount in millions as provided to you in the problem statement.) Investment in Trading Securities e. Suppose Waverly sells the investment in securities for $8,700 in 2017. Journalize the sale and then show the Investment in Trading Securities T-account as it appears after the sale. Begin by preparing the journal entry for the sale. (Enter amount in millions as provided to you in the problem statement. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Date Accounts and Explanations Debit Credit 2017 Now show the Investment in Trading Securities T-account as it appears after the sale. (Enter amount in millions as provided to you in the problem statement. For a zero balance, select the "Balance" reference and enter a "0" on the normal
