Zeus Investments Inc. is a regional freight company that began operations on January 1, 20Y8. The following transactions relate to trading securities acquired by Zeus Inc., which has a fiscal year ending on December 31: 20Y8 Feb. 14. Purchased 1,800 shares of Apollo Inc. common stock at $27 per share plus a brokerage commission of $360. Apollo Inc. has 78,960 shares of common stock outstanding. Apr. 1. Purchased securities of Ares Inc. as a trading investment for $10,080. June 1. Sold 400 shares of Apollo Inc. for $28 per share less a $50 brokerage commission. June 27. Received an annual dividend of $0.12 per share on 1,400 shares of Apollo Inc. stock. Oct. 15. Sold the remaining shares of Apollo Inc. for $26 per share less a $21 brokerage commission. Dec. 31. The trading securities of Ares Inc. have a fair value on December 31 of $13,080. 20Y9 Mar. 14. Purchased securities of Athena Inc. as a trading investment for $25,720. July 30. Sold securities of Athena Inc. that cost $3,215 for $2,570. Dec. 31. The fair values of the Ares Inc. and Athena Inc. securities are as follows: Issuing Company Cost Fair Value Ares Inc. $10,080 $10,800 Athena Inc. 38,080 43,400 Question 1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. If an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. Question 2. Prepare the Trading Investments section of the December 31, 20Y9, balance sheet for Zeus Inc.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Zeus Investments Inc. is a regional freight company that began operations on January 1, 20Y8. The following transactions relate to trading securities acquired by Zeus Inc., which has a fiscal year ending on December 31:

20Y8
Feb.	14.	Purchased 1,800 shares of Apollo Inc. common stock at $27 per share plus a brokerage commission of $360. Apollo Inc. has 78,960 shares of common stock outstanding.
Apr.	1.	Purchased securities of Ares Inc. as a trading investment for $10,080.
June	1.	Sold 400 shares of Apollo Inc. for $28 per share less a $50 brokerage commission.
June	27.	Received an annual dividend of $0.12 per share on 1,400 shares of Apollo Inc. stock.
Oct.	15.	Sold the remaining shares of Apollo Inc. for $26 per share less a $21 brokerage commission.
Dec.	31.	The trading securities of Ares Inc. have a fair value on December 31 of $13,080.
20Y9
Mar.	14.	Purchased securities of Athena Inc. as a trading investment for $25,720.
July	30.	Sold securities of Athena Inc. that cost $3,215 for $2,570.
Dec.	31.	The fair values of the Ares Inc. and Athena Inc. securities are as follows:

Issuing Company	Cost	Fair Value
Ares Inc.	$10,080	$10,800
Athena Inc.	38,080	43,400

Question 1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. If an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.

Question 2. Prepare the Trading Investments section of the December 31, 20Y9, balance sheet for Zeus Inc.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions