Question
Transactions for common stock and trading investments Zeus Investments Inc. is a regional freight company that began operations on January 1, 20Y8. The following transactions
Transactions for common stock and trading investments
Zeus Investments Inc. is a regional freight company that began operations on January 1, 20Y8. The following transactions relate to trading securities acquired by Zeus Inc., which has a fiscal year ending on December 31:
20Y8 | ||
Feb. | 14. | Purchased 3,400 shares of Apollo Inc. common stock at $38 per share plus a brokerage commission of $680. Apollo Inc. has 159,880 shares of common stock outstanding. |
Apr. | 1. | Purchased securities of Ares Inc. as a trading investment for $24,320. |
June | 1. | Sold 800 shares of Apollo Inc. for $39 per share less a $100 brokerage commission. |
June | 27. | Received an annual dividend of $0.11 per share on 2,600 shares of Apollo Inc. stock. |
Oct. | 15. | Sold the remaining shares of Apollo Inc. for $37 per share less a $25 brokerage commission. |
Dec. | 31. | The trading securities of Ares Inc. have a fair value on December 31 of $28,320. |
20Y9 | ||
Mar. | 14. | Purchased securities of Athena Inc. as a trading investment for $66,225. |
July | 30. | Sold securities of Athena Inc. that cost $13,245 for $11,310. |
Dec. | 31. | The fair values of the Ares Inc. and Athena Inc. securities are as follows: |
Issuing Company | Cost | Fair Value |
Ares Inc. | $24,320 | $25,600 |
Athena Inc. | 99,320 | 109,200 |
Required:
1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. If an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.
Date | Description | Debit | Credit |
---|---|---|---|
20Y8 | |||
Feb. 14 | fill in the blank 2 | fill in the blank 3 | |
fill in the blank 5 | fill in the blank 6 | ||
Apr. 1 | fill in the blank 8 | fill in the blank 9 | |
fill in the blank 11 | fill in the blank 12 | ||
June 1 | fill in the blank 14 | fill in the blank 15 | |
fill in the blank 17 | fill in the blank 18 | ||
fill in the blank 20 | fill in the blank 21 | ||
June 27 | fill in the blank 23 | fill in the blank 24 | |
fill in the blank 26 | fill in the blank 27 | ||
Oct. 15 | fill in the blank 29 | fill in the blank 30 | |
fill in the blank 32 | fill in the blank 33 | ||
fill in the blank 35 | fill in the blank 36 | ||
Dec. 31 | fill in the blank 38 | fill in the blank 39 | |
fill in the blank 41 | fill in the blank 42 | ||
20Y9 | |||
Mar. 14 | fill in the blank 44 | fill in the blank 45 | |
fill in the blank 47 | fill in the blank 48 | ||
July 30 | fill in the blank 50 | fill in the blank 51 | |
fill in the blank 53 | fill in the blank 54 | ||
fill in the blank 56 | fill in the blank 57 | ||
Dec. 31 | fill in the blank 59 | fill in the blank 60 | |
fill in the blank 62 | fill in the blank 63 |
2. Prepare the Trading Investments section of the December 31, 20Y9, balance sheet for Zeus Inc.
Zeus Investments Inc. Balance Sheet (selected items) December 31, 20Y9 | ||
---|---|---|
Current Assets: | ||
$fill in the blank 65 | ||
fill in the blank 67 | ||
$fill in the blank 69 |
3. How are unrealized gains or losses on trading investments presented on the financial statements of Zeus Inc.?
Unrealized gains or losses are reported in the , often as .
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