Question
Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities. a. Purchased
Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities. a. Purchased 32,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Yearend market price of Heller common stock is $17.50 per share. d. Sold all 51,200 common shares of Heller for $504,960 cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.
| Balance Sheet | Income Statement | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contrib. Capital | + | Earned Capital | Revenues | Expenses | = | Net Income | |||
| (a) | Answer
| Answer
| = | Answer
| Answer
| Answer
| Answer
| Answer
| = | Answer
| ||||||
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| ||||||||||
| (b) | Answer
| Answer
| = | Answer
| Answer
| Answer
| Answer
| Answer
| = | Answer
| ||||||
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| ||||||||||
| (c) | Answer
| Answer
| = | Answer
| Answer
| Answer
| Answer
| Answer
| = | Answer
| ||||||
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| ||||||||||
| (d) | Answer
| Answer
| = | Answer
| Answer
| Answer
| Answer
| Answer
| = | Answer
| ||||||
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| AnswerAccounts payableCashDividend incomeGain on saleInvestmentInvestment revenueLoss on saleRetained earningsUnrealized gainUnrealized lossN/A
| ||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Process Auditing Techniques Guide
Authors: J. P. Russell
1st Edition
0873895959, 978-0873895958
