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 companys investment journal entries and provide necessary information to the accountant preparing the financial statements.

PAGE 8

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Jan. 17	Investments-Red Rock Co. Stock		40,700.00
2		Cash			40,700.00
3	Feb. 5	Investments-Sunset Village Bonds		37,000.00
4		Interest Receivable		320.00
5		Cash			37,320.00
6	23	Investments-Mays and Co. Stock		27,750.00
7		Cash			27,750.00
8	Mar. 31	Cash		370.00
9		Interest Receivable			320.00
10		Interest Revenue			50.00
11	Apr. 6	Investment in Minions Corp. Stock		185,000.00
12		Cash			185,000.00
13	30	Cash		750.00
14		Dividend Revenue			750.00
15	Jul. 1	Cash		19,746.00
16		Loss on Sale of Investment		2,664.00
17		Interest Revenue			210.00
18		Investments-Sunset Village Bonds			22,200.00
19	Aug. 14	Cash		41,300.00
20		Gain on Sale of Investments			1,800.00
21		Investments-Harding Construction Stock			39,500.00
22	27	Cash		3,700.00
23		Investment in Minions Corp. Stock			3,700.00
24	Sep. 22	Cash		31,250.00
25		Gain on Sale of Investments			3,500.00
26		Investments-Mays and Co. Stock			27,750.00
27	30	Cash		160.00
28		Interest Revenue			160.00
29	Nov. 1	Investment in Minions Corp. Stock		16,650.00
30		Income of Minions Corp.			16,650.00
31	Dec. 31	Unrealized Loss on Available-For-Sale Investments		3,275.00
32		Valuation Allowance for Available-For-Sale Investments			3,275.00
33	31	Valuation Allowance for Trading Investments		2,150.00
34		Unrealized Gain on Trading Investments			2,150.00

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
Plus valuation allowance for trading investments
Trading investments at fair value

Points:

4 / 6

Available-For-Sale Securities
Available-for-sale investments at cost
Less valuation allowance for available-for-sale investments
Available-for-sale investments at fair value