the options for classifying are: trading, held to maturity, available for sale, no significant influence, significant influence, controlling interest

intere PI5-19A Classifying and accounting for debt and equity investments Jetway Corporation generated excess cash and invested in securities as follows: Learning Objec 2. Sep. 16 Gain CR $5,880 2018 Purchased 4,200 shares of Pogo, Inc. common stock at $12.00 per share. letway 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. Jul. 2 r all ce Aug. 21 Received a cash dividend of $0.80 per share on the Pogo stock Tradin Held AFS investment. Sep. 16 Sold the Pogo stock for $13.40 per share. Purchased a Violet bond for $20,000 at face value. Jetway classifies the investment as trading and short-term. Received a $100 interest payment from Violet. Oct. 1 Dec. 31 NO S Adjusted the Violet bond to its market value of $22,000. 31 e, Requirements Classify each of the investments made during 2018. (Assume the equity invest- ments represent less than 20% of ownership of outs tanding voting stock.) 2.Journalize the 2018 transactions. Explanations 3. Prepare T-accounts for the investment assets, and show how to report the invest- CuY t required. are not Jetway's balance sheet at December 31, 2018 ments on 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? d. Lea P15-20A Accounting for equity investments eheaining balance sheet of Waterfall Source Co. included a $400,000 investment in Evan). During the 1 mificant influence over