The Wellington Company You are working for The Wellington Company on temporary assignment while one of the accountantsis on family leave you have been asked to review the company investment journal entries and provide necessary information to the accountant preparing the financial statements Journal Description Debit Credit Jan. 17 Investments Red Rock Co. Stock 37.400 Cash 37,400 Dute Feb. 5 Investments-Sunset Village Bonds Interest Receivable Cash 34,000 290 34,290 Feb 23 Investments-Mays and Co Stock 25,500 25,500 340 Mar 31 Cash Interest Receivable Interest Revenue 290 50 170,000 Apr 6 Investment in Minions Corp. Stock Cash 170,000 800 Apr 30 Cash Dividend Revenue 800 18,530 190 Jul. 1 Cash Loss on Sale of Investment Interest Revenue Investments-Sunset Village Bonds 20 18,700 41,200 Aug. 14 Cash Gain on Sale of Investments Investments-Harding Construction Stock 1,800 39,400 3,400 Aug. 27 Cash Investment in Minions Corp. Stock 3,400 29,000 Sep. 22 Cash Gain on Sale of Investments Investments-Mays and Co. Stock 3,500 25,500 130 130 Sep. 30 Cash Interest Revenue 20,400 20,400 Nov. 1 Investment in Minions Corp. Stock Income of Minions Corp. Dec. 31 Unrealized Loss on Available For Sale Investments 3,275 Valuation Allowance for Available For Sale Investments 3,275 Dec. 31 Valuation Allowance for Trading Investments 2,150 Unrealized Gain on Trading Investments 2.150 Investments Review the journal entries on the Wellington Company panel then answer the following questions, 1. Which item is kely to be a trading security? Why? 2. How are brokerage commission fees treated on stock sales vs. stock purchases? 3. Based on these Journal entries, what is the company's Investment in Sunset Village bonds at the end of the year? 4. The journal entry on Aug. 27 most likely shows 5. As an investment, bonds are always chegorized 6. What is the company's investment in Minions Corp. at the end of the years 7. Which of the following investments are likely to be available for sale securit? Financial Statements and Valuation The accountant preparing the financial statements has asked you to provide the fair values of the end of the year for the investments. Present the information as it would be shown on the financial statements. Last year, The Wellington Company reported costs of $68,000 in trading investments and 582,000 in available for sale investments. Refer to the sournal entries shown on The Wellington Company Daniel Assume that all investments sold during this year were trading investments and that purchases during the year were new investments GMT Coupons on The Wellington Company panel. Assume that all investments sold during this year were trading investments and that purchases during the year were new investments, 1. Select the correct label for each line and fill in the amount. In classifying the investments, choose a categorization which seems mostly, given the pattern of transactions in the jour entries. Entall amounts as positive numbers. If an amount box does not require an entry, leave it blank Trading Securities Available For Sale Securities 2. Where on the balance sheet de trading securities appear? 3. Where on the financial statements do available for sale securities NOT appear 4. Where are held-to-maturity securities reported? Based on the journal entries for this year, does the company have any held-to-maturity securities! Based on the journal entries for this yeat does 5. Where are securities held for strategic reasons reported on the financial statements when using the ty method The Wellington Company have any quity sect? 6. Which of the following items does not affect net income? Tancial statements. Last year me on The Wellington Company panel. Assume that all investments sold durir 1. Select the correct label for each line and fill in the amount. In classifyir entries. Enter all amounts as positive numbers. If an amount box does no Trading Securities Less valuation allowance for trading investments Plus valuation allowance for trading investments Trading investments at fair value Trading investments at cost Trading investments, net Unrealized gain (loss) on trading investments drities appear? WS 3. Where on the financial statements do available-for-sale securities NOT 4. Where are held-to-maturity securities reported? 5. Where are securities held for strategic reasons reported on the financia The Wellington Company have any equity securities? 6. Which of the following items does not affect net income? es not Trading Securities Available-For-Sale Securities Available-for-sale investments at cost Available-for-sale investments at fair value kar? Available-for-sale investments, net Less valuation allowance for available-for-sale investments le securities NOT appea Plus valuation allowance for available-for-sale investments Based Unrealized gain (loss) on available-for-sale investments 5. wrtere are secunices neig or strategic reasons reported on the financial state The Wellington Company have any equity securities? 6. Which of the following items does not affect net income? The Wellington Company You are working for The Wellington Company on temporary assignment while one of the accountantsis on family leave you have been asked to review the company investment journal entries and provide necessary information to the accountant preparing the financial statements Journal Description Debit Credit Jan. 17 Investments Red Rock Co. Stock 37.400 Cash 37,400 Dute Feb. 5 Investments-Sunset Village Bonds Interest Receivable Cash 34,000 290 34,290 Feb 23 Investments-Mays and Co Stock 25,500 25,500 340 Mar 31 Cash Interest Receivable Interest Revenue 290 50 170,000 Apr 6 Investment in Minions Corp. Stock Cash 170,000 800 Apr 30 Cash Dividend Revenue 800 18,530 190 Jul. 1 Cash Loss on Sale of Investment Interest Revenue Investments-Sunset Village Bonds 20 18,700 41,200 Aug. 14 Cash Gain on Sale of Investments Investments-Harding Construction Stock 1,800 39,400 3,400 Aug. 27 Cash Investment in Minions Corp. Stock 3,400 29,000 Sep. 22 Cash Gain on Sale of Investments Investments-Mays and Co. Stock 3,500 25,500 130 130 Sep. 30 Cash Interest Revenue 20,400 20,400 Nov. 1 Investment in Minions Corp. Stock Income of Minions Corp. Dec. 31 Unrealized Loss on Available For Sale Investments 3,275 Valuation Allowance for Available For Sale Investments 3,275 Dec. 31 Valuation Allowance for Trading Investments 2,150 Unrealized Gain on Trading Investments 2.150 Investments Review the journal entries on the Wellington Company panel then answer the following questions, 1. Which item is kely to be a trading security? Why? 2. How are brokerage commission fees treated on stock sales vs. stock purchases? 3. Based on these Journal entries, what is the company's Investment in Sunset Village bonds at the end of the year? 4. The journal entry on Aug. 27 most likely shows 5. As an investment, bonds are always chegorized 6. What is the company's investment in Minions Corp. at the end of the years 7. Which of the following investments are likely to be available for sale securit? Financial Statements and Valuation The accountant preparing the financial statements has asked you to provide the fair values of the end of the year for the investments. Present the information as it would be shown on the financial statements. Last year, The Wellington Company reported costs of $68,000 in trading investments and 582,000 in available for sale investments. Refer to the sournal entries shown on The Wellington Company Daniel Assume that all investments sold during this year were trading investments and that purchases during the year were new investments GMT Coupons on The Wellington Company panel. Assume that all investments sold during this year were trading investments and that purchases during the year were new investments, 1. Select the correct label for each line and fill in the amount. In classifying the investments, choose a categorization which seems mostly, given the pattern of transactions in the jour entries. Entall amounts as positive numbers. If an amount box does not require an entry, leave it blank Trading Securities Available For Sale Securities 2. Where on the balance sheet de trading securities appear? 3. Where on the financial statements do available for sale securities NOT appear 4. Where are held-to-maturity securities reported? Based on the journal entries for this year, does the company have any held-to-maturity securities! Based on the journal entries for this yeat does 5. Where are securities held for strategic reasons reported on the financial statements when using the ty method The Wellington Company have any quity sect? 6. Which of the following items does not affect net income? Tancial statements. Last year me on The Wellington Company panel. Assume that all investments sold durir 1. Select the correct label for each line and fill in the amount. In classifyir entries. Enter all amounts as positive numbers. If an amount box does no Trading Securities Less valuation allowance for trading investments Plus valuation allowance for trading investments Trading investments at fair value Trading investments at cost Trading investments, net Unrealized gain (loss) on trading investments drities appear? WS 3. Where on the financial statements do available-for-sale securities NOT 4. Where are held-to-maturity securities reported? 5. Where are securities held for strategic reasons reported on the financia The Wellington Company have any equity securities? 6. Which of the following items does not affect net income? es not Trading Securities Available-For-Sale Securities Available-for-sale investments at cost Available-for-sale investments at fair value kar? Available-for-sale investments, net Less valuation allowance for available-for-sale investments le securities NOT appea Plus valuation allowance for available-for-sale investments Based Unrealized gain (loss) on available-for-sale investments 5. wrtere are secunices neig or strategic reasons reported on the financial state The Wellington Company have any equity securities? 6. Which of the following items does not affect net income