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i More Info - X 2018 Purchased 3,300 shares of Cone, Inc. common stock at $13.00 per share. Brown Package plans to sell the stock within three months, when the company will need the cash for normal operations. Brown Package does not Jul. 2 have significant influence over Cone. Aug. 21 Received a cash dividend of $0.10 per share on the Cone stock investment. Sep. 16 Sold the Cone stock for $13.70 per share. Purchased a Ronco bond for $40,000 at face value. Brown Package classifies Oct. 1 the investment as trading and short-term. Dec. 31 Received a $160 interest payment from Ronco. Dec. 31 Adjusted the Ronco bond to its market value of $42,000. Print Done - X Requirements 1. Classify each of the investments made during 2018. (Assume the equity investments represent less than 20% of ownership of outstanding voting stock.) 2. Journalize the 2018 transactions. Explanations are not required. 3. Prepare T-accounts for the investment assets, and show how to report the investments on Brown Package's balance sheet at December 31, 2018. 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? Print Done This Question: 10 pts 5 of 8 (0 complete) Brown Package Corporation generated excess cash and invested in securities as follows: (Click the icon to view the transactions.) Read the requirements Requirement 1. Classify each of the investments made during 2018. (Assume the investments represent less than 20% of ownership of outstanding voting stock.) Classification Reason Cone stock Ronco bond Requirement 1. Classify each of the investments made during 2018. (Assume the investments represent less than 20% of ownership of outstanding voting stock.) Classification Reason Cone stock ecord debits first, then credits. Exclude explanations from journal entries. If no entry is required, select "No ent Ronco bond Available-for-Sale Debt Investment Requirementi Controlling interest equity investment Jul. 2: Purchas Held-to-Maturity Debt Investment Date No Significant interest equity investment Significant interest equity investment Jul. 2 Trading Debt Investment own Package plans to sell the stock within three months, when the company will need the cash for normal ope Debit Credit TIL Reason ions from journal entries months, when the compa Intent is to hold for less than a year. Explanation Intent is to hold for several years. mon stock at Investment will be held to maturity. Lints Ownership is between 20% and 50% of total oustanding stock. Ownership is greater than 50% of total outstanding stock. Ownership is less than 20% of total oustanding stock. Requirement 2. Journalize the 2018 transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required, select "No entry required" on the first line of the Accounts column and leave the remaining cells blank.) Jul. 2: Purchased 3,300 shares of Cone, Inc. common stock at $13.00 per share. Brown Package plans to sell the stock within three months, when the company will need the cash for normal operations. Brown Package does not have significant influence over Cone. Date Accounts Debit Credit Jul. 2 Aug. 21: Received a cash dividend of $0.10 per share on the Cone stock investment. Date Accounts Debit Credit Aug. 21 Sep. 16: Sold the Cone stock for $13.70 per share. Date Accounts Debit Credit Sep. 16 Oct 1: Purchased a Ronco bond for $40,000 at face value. Brown Package classifies the investment as trading and short-term. Date Accounts Debit Credit Oct. 1 Dec. 31: Received a $160 interest payment from Ronco Date Accounts and Explanation Debit Credit Dec. 31 Dec. 31: Adjusted the Ronco bond to its market value of $42,000. Date Accounts Debit Credit Dec. 31 te Accounts lent te D No entry required Available-for-Sale Debt Investments Cash Receive Dividend Revenue Equity Investments Fair Value AdjustmentAvailable-for-Sale Fair Value Adjustment-Equity Investments Fair Value AdjustmentHeld-to-Maturity Fair Value Adjustment- Trading Gain on Disposal Held-to-Maturity Debt Investments Sold the Interest Revenue te Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding Gain-Equity Investments Unrealized Holding GainHeld-to-Maturity Unrealized Holding GainTrading Unrealized Holding LossAvailable-for-Sale Unrealized Holding LossEquity Investments urchase Unrealized Holding Loss-Held-to-Maturity Unrealized Holding Loss-Trading D ifies th te D Requirement 3. Prepare T-accounts for the investment assets and show how to report the investments on Brown Package's balance sheet at December 31, 2018. Begin by preparing T-accounts for the investment assets that are remaining at December 31, 2018. (Select the investment account first, then the fair value adjustment account. If no fair value account is needed, leave that T-account heading and the remaining cells blank.) Use the partial balance sheet below to show how to report the investments on Brown Package's balance sheet at December 31, 2018. (If a box is not used in the balance sheet, leave the box empty, do not select a label or enter a zero.) Brown Package Corporation Balance Sheet (Partial) December 31, 2018 Current Assets Long-Term Assets: Requirement 4. Where is the unrealized holding gain or loss associated with the trading debt investment reported? The unrealized holding gain (loss) associated with the trading debt investment is included in the Requirement 3. Prepare T-accounts for the investment assets and show how to Begin by preparing T-accounts for the investment assets that are remaining at De Available-for-Sale Debt Investments Equity Investments Held-to-Maturity Debt Investments Trading Debt Investments Requirement 3. Prepare T-accounts for the investment assets and show how to report the investments on Brown P Begin by preparing T-accounts for the investment assets that are remaining at December 31, 2018. (Select the inve Jul. 2 Sep. 16 Oct. 1 Dec. 31 Accumulated Other Comprehensive Income (Loss) Available-for-Sale Debt Investments (at cost) Available-for-Sale Debt Investments (at fair value) Dividend Revenue Equity Investments Held-to-Maturity Debt Investments Investment Revenue Trading Debt Investments (at cost) Trading Debt Investments (at fair value) Unrealized Holding Gain (Loss)Available-for-Sale Unrealized Holding Gain (Loss)-Equity Investments Unrealized Holding Gain (Loss)Held-to-Maturity Unrealized Holding Gain (Loss)Trading estments on Brown Package Long-Term Assets: Requirement 4. Where is the unrealized holding gain or loss associated with the trading debt in Long-Term Assets accumulated other comprehensive income section on the balance sheet. balance sheet as a contra account to the trading debt investment account. revenues section of the income statement. other income and expenses) section on the income statement. Requirement 4. Where is the unrealized holding gain or loss associated with the trading debt in The unrealized holding gain (loss) associated with the trading debt investment is included in the Choose from any list or enter any number in the input fields and then continue to the next