What are correct answers of Trading investments at cost Correct
and Trading investments at fair value Correct?
Matb A X b nEPEE3/ B ( x nex JeneHell X 3 Connect x CengageNOW x M Your question | x Course Hero X v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Gmail MepesoAunk Moe BAOpOBbe ART 2 ac 51 Account 4B Mebenb G TouHoe BpeMa KMe... Fresno City College Ba Inting Review Module (Course P Calculator The Wellington Company Investments Financial Statements and Valuation The Wellington Company You are working for The Wellington Company on temporary assignment while one of the accountants is on family leave. You have been asked to review the company's investment journal entries and provide necessary information to the accountant preparing the financial statements. PAGE 8 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT Jan. 17 Investment-Red Rock Co. Stock 40.700.00 Cash 40.700.00 Feb. 5 Investment-Sunset Village Bonds 37.000.00 Interest Receivable 320.00 Cash 37.320.00 23 Investment-Mays and Co. Stock 27,750.00 Cash 27.750.00 Mar. 31 Cash 370.00 Interact Paranahla unno Check My Work SA v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=fa Gmail Mepesogunk Moe 3AOPOBbe ART 2 ac 51 Account 48 MeGenb G TOYHOE BpeMa KNe... Fresno Ci ting Review Module (Course P Calculator The Wellington Company Investments Financial Statements and Valuation The Wellington Company Cash 27,750.00 Mar. 31 Cash 370.00 Interest Receivable 320.00 10 Interest Revenue 50.00 11 Apr. 6 Investment in Minions Corp. Stock 185.000.00 17 Cash 185,000.00 13 30 Cash 750.00 14 Dividend Revenue 750.00 15 Jul 1 Cash 21.374.00 16 Loss on Sale of Investments 2.886.00 17 Interest Revenue 210.00 Investment-Sunset Village Bonds 24,050.00 19 Aug. 14 Cash 41,200.00 Gain on Sale of Investments 1,800.00 21 Investment-Harding Construction Stock 39.400.00 heck My Work Sv2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker =&takeAssignmentSessionLocator =&inprogress mail Dependaunk see shoponbe ART 2 ac51 Account 48 MebeAt G TOunoe BpeMa KAC.. RC Fresne g Review Module (Course P Calculator The Wellington Company Investments Financial Statements and Valuation he Wellington Company Jul. 1 Cash 21,374.00 Loss on Sale of Investments 2,886.00 Interest Revenue 210.00 Investment Sunset Village Bonds 24,050.00 19 Aug. 14 Cash 41.200.00 20 Gain on Sale of Investments 1,800.00 21 Investment Harding Construction Stock 39.400.00 22 27 Cash 3,700.00 25 Investment in Minions Corp. Stock 3.700.00 24 Sep. 22 Cash $1.250.00 75 Gain on Sale of Investments 5.500.00 Investment Mays and Co. Stock 27.750.00 30 Cash 160.00 Interest Revenue 160,00 Nov. 1 Investment in Minions Corp. Stock 16,650.00 Income of Minions Corp. 16.650.00 Check My Work SDGEPEE An ( x x 3enetball X Connect X CengageNOW x M Your question | x cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress= nepesoAUNK Moe 34opOBbe ART 2 ac 51 Account 4B Mebe/b G TouHoe BpeMa Kne. Fresno view Module (Course P Calculator ellington Company Investments Financial Statements and Valuation lington Company 27 Cash 3,700.00 Investment in Minions Corp. Stock 3,700.00 Sep. 22 Cash 31.250.00 Gain on Sale of Investments 3,500.00 Investment-Mays and Co. Stock 27,750.00 30 Cash 160.00 Interest Revenue 160.00 Nov. 1 Investment in Minions Corp. Stock 16,650.00 Income of Minions Corp. 16,650.00 Dec. 31 Unrealized Loss on Available-For Sale Investments 3,275.00 Valuation Allowance for Available-For-Sale Investments 3,275.00 31 Valuation Allowance for Trading Investments 2,150.00 Unrealized Gain on Trading Investments 2,150.00 y Work Sak npojat x OnEPEEMB( x 3 max Benefit X 3 Connect * CengageNOW * M Your question * Course Hero x C v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false ona M Gmail Dependaunk Moe anopotbe ART 2 ac 51 Account 48 MeGem G TouHoe SpeMa Kite. Fresno City College Accounting Review Module (Course P Calculator The Wellington Company Investments Financial Statements and Valuation Investments Review the journal entries on The Wellington Company panel then answer the questions below. 1. Which item is likely to be a trading security? Mays and Co. v Why? Because it was sold quickly v 2. How are brokerage commission fees treated on stock sales vs, stock purchases? They are deducted from cash received or included in the stock cost v 3. Based on these journal entries, what is the company's investment in Sunset Village bonds at the end of the year? $12,950 Y 4. The journal entry on Aug. 27 most likely shows Dividend of Minions Corp. stock v 5. As an investment, bonds are always categorized as none of these answers v 6. What is the company's investment in Minions Corp, at the end of the year? $197,950 V Points. 717 7. Which of the investments below are likely to be available for sale securties? Check all that apply Harding Construction stock Mays and Co. stock Cannot be determined Check My Work 9 SX bnEPEEMAC x O nex Benew) x 3 Connect * CengageNOW * M Your question x Course Hero v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker =&takeAssignmentSessionLocator=&inprogress =false Gmail nepesoAux Moe 340posbe ART 2 ac 51 Account 48 MeGen. G rounce opens are. Fresno City College ting Review Module (Course P Calculator The Wellington Company Investments Financial Statements and Valuation Financial Statements and Valuation Shaded cells have feedback The accountant preparing the financial statements has asked you to provide the fair value as 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 $82,000 in available-for-sale investments Refer to the journal entries shown 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 most likely, given the pattern of transactions in the journal entries. Enter all amounts as positive numbers If an amount box does not require an entry, leave it blank Trading Securities Trading investments at cost y $24,950 X Plus valuation allowance for trading investments v 2,150 Trading investments at fair value v $226,150 X K Points: 416 V Cannot be determined Check My Work S
