2012 Purchased 900 shares of Armor, Inc., stock for $38,700. Norton plans to sell the stock at a profit in the near future. Received a cash dividend of $0.72 per share on the Armor, Inc., stock. Adjusted the investment in Armor, Inc., stock. Current market value is $50,400. Norton still plans to sell the stock in early 2013. Dec 12 21 31 2013 Jan 16 Sold the Armor, Inc., stock for $54,300. • Requirement 1. Prepare T-accounts for Cash, Short-Term Investment, Dividend Revenue, Unrealized Gain (Loss) on Investment, and Gain on Sale of Investment. Show the effects of Norton's invest- ment transactions. Start with a cash balance of $98,000; all the other accounts start at zero.
2012 Purchased 900 shares of Armor, Inc., stock for $38,700. Norton plans to sell the stock at a profit in the near future. Received a cash dividend of $0.72 per share on the Armor, Inc., stock. Adjusted the investment in Armor, Inc., stock. Current market value is $50,400. Norton still plans to sell the stock in early 2013. Dec 12 21 31 2013 Jan 16 Sold the Armor, Inc., stock for $54,300. • Requirement 1. Prepare T-accounts for Cash, Short-Term Investment, Dividend Revenue, Unrealized Gain (Loss) on Investment, and Gain on Sale of Investment. Show the effects of Norton's invest- ment transactions. Start with a cash balance of $98,000; all the other accounts start at zero.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- E5-22A (Learning Objective 1: Apply GAAP for short-term investments) Norton Corporation reports short-term investments on its
balance sheet . Suppose a division of Norton completed the following short-term investment transactions during 2012: 2012 Purchased 900 shares of Armor, Inc., stock for $38,700. Norton plans to sell the stock at a profit in the near future. Received a cash dividend of $0.72 per share on the Armor, Inc., stock. Adjusted the investment in Armor, Inc., stock. Current market value is $50,400. Norton still plans to sell the stock in early 2013. Dec 12 21 31 2013 Jan 16 Sold the Armor, Inc., stock for $54,300. Requirement 1. Prepare T-accounts for Cash, Short-Term Investment, Dividend Revenue, Unrealized Gain (Loss) on Investment, and Gain on Sale of Investment. Show the effects of Norton's invest- ment transactions. Start with a cash balance of $98,000; all the other accounts start at zero.

Transcribed Image Text:E5-22A (Learning Objective 1: Apply GAAP for short-term investments) Norton Corporation
reports short-term investments on its balance sheet. Suppose a division of Norton completed the
following short-term investment transactions during 2012:
2012
Purchased 900 shares of Armor, Inc., stock for $38,700. Norton
plans to sell the stock at a profit in the near future.
Received a cash dividend of $0.72 per share on the
Armor, Inc., stock.
Adjusted the investment in Armor, Inc., stock. Current market
value is $50,400. Norton still plans to sell the stock in
early 2013.
Dec 12
21
31
2013
Jan 16
Sold the Armor, Inc., stock for $54,300.
Requirement
1. Prepare T-accounts for Cash, Short-Term Investment, Dividend Revenue, Unrealized Gain
(Loss) on Investment, and Gain on Sale of Investment. Show the effects of Norton's invest-
ment transactions. Start with a cash balance of $98,000; all the other accounts start at zero.
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