Assessing Financial Statement Effects of Marketable Equity Securities 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 14,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Year-end market price of Heller common stock is $17.50 per share. d. Sold all 14,000 common shares of Heller for $220,920 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. tion N/A N/A N/A N/A Cash Asset (224,000)✓ 17,500 ✓ xN/A 220,920✔ * N/A 0✔ + ✔ N/A * N/A Noncash Assets 224,000 0 * N/A = + ✔N/A 21,000 ✓= * N/A (171,500) x = + * N/A Balance Sheet Liabilities. 0 ✓ + ✔ N/A 0✓ 0 ✓ ✔ N/A ÷ ✔ N/A 0 ✓ ♦ ✔ N/A Contrib. Capital 0✔ 수 0✔ + 0✓ ✔ N/A 0✓ 수 ✔ N/A → ✔ N/A N/A Earned Capital 0✔ ♦ 17,500 ✓ + 1/A 21,000 ✓ M/A + N/A 49,420 x + 1/A Revenues Income Statement 0- ✔ N/A 17,500 + x N/A 21,000 ✓ + x N/A 49,420 x- → ✔ N/A Expenses = 0✓= ÷ 0✔ ✓ ✓ 0 ✓= ✔ 0x = + x Net Income 0✔ 17,500 ✓ 21,000 ✓ 49,420 x
Assessing Financial Statement Effects of Marketable Equity Securities 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 14,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Year-end market price of Heller common stock is $17.50 per share. d. Sold all 14,000 common shares of Heller for $220,920 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. tion N/A N/A N/A N/A Cash Asset (224,000)✓ 17,500 ✓ xN/A 220,920✔ * N/A 0✔ + ✔ N/A * N/A Noncash Assets 224,000 0 * N/A = + ✔N/A 21,000 ✓= * N/A (171,500) x = + * N/A Balance Sheet Liabilities. 0 ✓ + ✔ N/A 0✓ 0 ✓ ✔ N/A ÷ ✔ N/A 0 ✓ ♦ ✔ N/A Contrib. Capital 0✔ 수 0✔ + 0✓ ✔ N/A 0✓ 수 ✔ N/A → ✔ N/A N/A Earned Capital 0✔ ♦ 17,500 ✓ + 1/A 21,000 ✓ M/A + N/A 49,420 x + 1/A Revenues Income Statement 0- ✔ N/A 17,500 + x N/A 21,000 ✓ + x N/A 49,420 x- → ✔ N/A Expenses = 0✓= ÷ 0✔ ✓ ✓ 0 ✓= ✔ 0x = + x Net Income 0✔ 17,500 ✓ 21,000 ✓ 49,420 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Assessing Financial Statement Effects of Marketable Equity Securities
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 14,000 common shares of Heller Co. at $16 cash per share.
b. Received a cash dividend of $1.25 per common share from Heller.
c. Year-end market price of Heller common stock is $17.50 per share.
d. Sold all 14,000 common shares of Heller for $220,920 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.
tion
N/A
N/A
N/A
N/A
Cash
Asset
(224,000)
17,500
+
220,920
* N/A
◆ * N/A
0
N/A
* N/A
Noncash Assets
224,000 =
=
21,000
* N/A
0✓ =
♦
=
N/A
* N/A
(171,500) * =
* N/A
Balance Sheet
Liabilities
0
0✔
0
0
4
+
>
N/A
N/A
N/A
N/A
Contrib.
Capital
0
0✔
0
♥
0
(▶
+
>
N/A
N/A
N/A
N/A
Earned
Capital
17,500 ✓
21,000 ✓
49,420 *
N/A
XI/A
XI/A
XI/A
Revenues
17,500 ✓
21,000
49,420 x
Income Statement
N/A
X N/A
* N/A
N/A
Expenses
0
0
0
0 x
X
Net
Income
0
17,500
21,000
49,420 X
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