Question

In: Accounting

You are working for The Wellington Company on temporary assignment while one of the accountants is...

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

The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business.

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

PAGE 8

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

Jan. 17

Investment-Red Rock Co. Stock

37,400.00

2

Cash

37,400.00

3

Feb. 5

Investment-Sunset Village Bonds

34,000.00

4

Interest Receivable

290.00

5

Cash

34,290.00

6

23

Investment-Mays and Co. Stock

25,500.00

7

Cash

25,500.00

8

Mar. 31

Cash

340.00

9

Interest Receivable

290.00

10

Interest Revenue

50.00

11

Apr. 6

Investment in Minions Corp. Stock

170,000.00

12

Cash

170,000.00

13

30

Cash

750.00

14

Dividend Revenue

750.00

15

Jul. 1

Cash

18,162.00

16

Loss on Sale of Investments

2,448.00

17

Interest Revenue

210.00

18

Investment-Sunset Village Bonds

20,400.00

19

Aug. 14

Cash

41,300.00

20

Gain on Sale of Investments

1,800.00

21

Investment-Harding Construction Stock

39,500.00

22

27

Cash

3,400.00

23

Investment in Minions Corp. Stock

3,400.00

24

Sep. 22

Cash

29,000.00

25

Gain on Sale of Investments

3,500.00

26

Investment-Mays and Co. Stock

25,500.00

27

30

Cash

130.00

28

Interest Revenue

130.00

29

Nov. 1

Investment in Minions Corp. Stock

15,300.00

30

Income of Minions Corp.

15,300.00

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 2150
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 3275
Available-for-sale investments at fair value ?

Solutions

Expert Solution


Related Solutions

You are working for The Wellington Company on temporary assignment while one of the accountants is...
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 The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business. journal entries and provide necessary information to the accountant preparing the financial statements. PAGE 8 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Jan. 17 Investment-Red Rock...
Select a company you are familiar with or one you are currently working in, or one...
Select a company you are familiar with or one you are currently working in, or one with information publicly available. Using your own words as much as possible, and in not more than 2,000 words (in total): (a) Provide a brief description of the organisation - background, the organizational structure, the nature of business, the industry and the environment it is operating in, its products/services, etc. (b) Choose one functional area (e.g. production, sales, customer service etc.) and describe in...
While working for a polling company at C-Span, you are asked  to determine the percentage of the...
While working for a polling company at C-Span, you are asked  to determine the percentage of the population that feel that the president has done a favorable job in handling the Pandemic.  You will take a SRS of adults in the USA.  We would like to be 95 % confident with a margin of error of 3 points. If the last estimate done by FOX News was known to be 58%, what size of sample would be needed?    Since you believe that the...
You are a graduate working for the Chartered Accountants firm, Smart and Associates. The managing partner...
You are a graduate working for the Chartered Accountants firm, Smart and Associates. The managing partner of the firm, John Smart is aware of increasing interest by clients on the issue of climate change, as well as related developments in corporate reporting. He has asked you to prepare a short report, which could be used to brief clients on the issue of climate change, why it could be important to them and the main financial accounting and reporting considerations. Required:...
You are the audit partner of Integrity Chartered Accountants (“ICA”), working on the audit of Darwin...
You are the audit partner of Integrity Chartered Accountants (“ICA”), working on the audit of Darwin Tourist Buses (“DTB”) for the 2019 financial year. DTB is a provider of luxury bus trips all around Australia, including both interstate capital city travel and conference and holiday packages. The net profit before tax of DTB for the 2019 financial year is $14.5M while net assets total $232M. You are reviewing the 2019 audit working papers and note that the assurance services senior...
Background Assume it is currently 1 June 2020. You are working for the temporary accounting employment...
Background Assume it is currently 1 June 2020. You are working for the temporary accounting employment agency known as Accomptemp. Today you have been asked to work at Choco Holly, a small chocolate store that operates in inner city Perth and is owned by Helen Bridgman. Your task here is to complete the accounting cycle for Choco Holly for the month of June 2020. To assist you in this task, Helen tells you to read the company's accounting policies and...
Been working on this one for a while - and can only get through part A......
Been working on this one for a while - and can only get through part A... for part B, I am trying 44.1+(28.836)(4.8x10-2x2pi)=52.8 and 44.1-(28.836)(4.8x10-2x2pi)=28.18 --> it keeps marking this wrong. A demonstration gyroscope wheel is constructed by removing the tire from a bicycle wheel 0.655 m in diameter, wrapping lead wire around the rim, and taping it in place. The shaft projects 0.200 m at each side of the wheel, and a woman holds the ends of the shaft...
What would be deductible if you lived and worked in MI but work sent you to WI for a temporary assignment?
What would be deductible if you lived and worked in MI but work sent you to WI for a temporary assignment?What if while in WI, you decided to quit your job and instead work for them as an independent contractor?What if you moved to WI permanently and continued your work there as an independent contractor?
This assignment will acquaint you with the use of while loops and boolean expressions. You will...
This assignment will acquaint you with the use of while loops and boolean expressions. You will create a program that acts as a score keeper of a racquet ball game between two players. The program will continually ask the user who the winner of every point is as the game is played. It will maintain the scores and declare the match is over, using these rules: (1) A game is over when a. one of the players wins 7 points...
Question 1 You are the audit partner of Merit Chartered Accountants (“MCA”), working on the audit...
Question 1 You are the audit partner of Merit Chartered Accountants (“MCA”), working on the audit of Darwin Tourist Buses (“DTB”) for the 2017 financial year. DTB is a provider of luxury bus trips all around Australia, including both interstate capital city travel and conference and holiday packages. The net profit before tax of DTB for the 2017 financial year is $14.5M while net assets total $232M. You are reviewing the 2017 audit working papers and note that the assurance...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT