TraderTrader

Investments completed the following investment transactions during 2018:

Requirement 1. Journalize Trader's investment transactions. Explanations are not required. ?(Record debits? first, then credits. Exclude explanations from journal entries.

Jan.? 14: Purchased 900 shares of Velcon ?stock, paying $55 per share. The investment represents 2% ownership in Velcon's voting stock.

Trader does not have significant influence over Velcon.

Trader intends to hold the investment for the indefinite future.

Date			Accounts	Debit	Credit
Jan. 14			Unrealized Holding GainAvailable-for-Sale	49,500
			Cash

Aug.? 22: Received a cash dividend of $ 0.34 per share on the Velcon stock.

Date			Accounts	Debit	Credit
Aug. 22			Cash	306
			Dividend Revenue

Dec.? 31: Adjusted the investment to its current market value of $53 per share.

Date			Accounts	Debit	Credit
Dec. 31			Cash	47,700
			Loss on Disposal	1,800
			Unrealized Holding LossAvailable-for-Sale		49,500

Dec.? 31: Velcon reported net income of $180,000 for the year ended 2018.

Date

Accounts

Debit

Credit

Dec. 31

No entry required

Requirement 2. Classify and prepare a partial balance sheet for Trader?'s Velcon investment as of December? 31, 2018.

?(Use a minus sign or parentheses to enter a loss. If a box is not used in the balance? sheet, leave the box? empty; do not select a label or enter a? zero.)

Trader Investments
Balance Sheet (Partial)
December 31, 2018
Current Assets:
Long-term Assets:
Stockholders' Equity
Accumulated Other Comprehensive Income:

Requirement 3. Prepare a partial income statement for Trader Investments for year ended December? 31, 2018.

?(Use a minus sign or parentheses to enter a? loss.)

Trader Investments
Income Statement (Partial)
For the Year Ended December 31, 2018
Other Income and (Expenses):