Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,600 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $720. Apr. 1. Purchased 1,700 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $340. June 1. Sold 900 shares of Apollo Inc. for $44 per share less an $120 brokerage commission. June 27. Received an annual dividend of $0.14 per share on Apollo Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 1,600 shares of Athena Inc. as a trading security at $50 per share plus a $240 brokerage commission. June 26. Received an annual dividend of $0.17 per share on Apollo Inc. stock. July 30. Sold 300 shares of Athena Inc. for $44 per share less a $90 brokerage commission. Dec. 31. The portfolio of trading securities had a cost of $211,075 and a fair value of $205,800, requiring a credit balance in Valuation Allowance for Trading Investments of $5,275 ($211,075 - $205,800). Thus, the debit balance from December 31, Year 1 is to be adjusted to the new balance. Required: 1. Journalize the entries to record these transactions. For a compound transaction, 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. Date Description Debit Credit Year 1 Feb. 14 fill in the blank 2 fill in the blank 4 Apr. 1 fill in the blank 6 fill in the blank 8 June 1 fill in the blank 10 fill in the blank 11 fill in the blank 13 fill in the blank 14 fill in the blank 16 fill in the blank 17 June 27 fill in the blank 19 fill in the blank 21 Dec. 31 fill in the blank 23 fill in the blank 25 Year 2 Mar. 14 fill in the blank 27 fill in the blank 29 June 26 fill in the blank 31 fill in the blank 33 July 30 fill in the blank 35 fill in the blank 36 fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 Dec. 31 fill in the blank 44 fill in the blank 46 2. Prepare the investment-related current asset balance sheet presentation for Zeus Investments Inc. on December 31, Year 2. Zeus Investments Inc. Balance Sheet (selected items) December 31, Year 2 Current Assets: fill in the blank 48 fill in the blank 50 fill in the blank 52 3. How are unrealized gains or losses on trading investments presented in the financial statements of Zeus Investments Inc.? Unrealized gains or losses are reported in the , often as

Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,600 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $720. Apr. 1. Purchased 1,700 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $340. June 1. Sold 900 shares of Apollo Inc. for $44 per share less an $120 brokerage commission. June 27. Received an annual dividend of $0.14 per share on Apollo Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 1,600 shares of Athena Inc. as a trading security at $50 per share plus a $240 brokerage commission. June 26. Received an annual dividend of $0.17 per share on Apollo Inc. stock. July 30. Sold 300 shares of Athena Inc. for $44 per share less a $90 brokerage commission. Dec. 31. The portfolio of trading securities had a cost of $211,075 and a fair value of $205,800, requiring a credit balance in Valuation Allowance for Trading Investments of $5,275 ($211,075 - $205,800). Thus, the debit balance from December 31, Year 1 is to be adjusted to the new balance. Required: 1. Journalize the entries to record these transactions. For a compound transaction, 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. Date Description Debit Credit Year 1 Feb. 14 fill in the blank 2 fill in the blank 4 Apr. 1 fill in the blank 6 fill in the blank 8 June 1 fill in the blank 10 fill in the blank 11 fill in the blank 13 fill in the blank 14 fill in the blank 16 fill in the blank 17 June 27 fill in the blank 19 fill in the blank 21 Dec. 31 fill in the blank 23 fill in the blank 25 Year 2 Mar. 14 fill in the blank 27 fill in the blank 29 June 26 fill in the blank 31 fill in the blank 33 July 30 fill in the blank 35 fill in the blank 36 fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 Dec. 31 fill in the blank 44 fill in the blank 46 2. Prepare the investment-related current asset balance sheet presentation for Zeus Investments Inc. on December 31, Year 2. Zeus Investments Inc. Balance Sheet (selected items) December 31, Year 2 Current Assets: fill in the blank 48 fill in the blank 50 fill in the blank 52 3. How are unrealized gains or losses on trading investments presented in the financial statements of Zeus Investments Inc.? Unrealized gains or losses are reported in the , often as

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Year 1
Feb. 14.	Purchased 3,600 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $720.
Apr. 1.	Purchased 1,700 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $340.
June 1.	Sold 900 shares of Apollo Inc. for $44 per share less an $120 brokerage commission.
June 27.	Received an annual dividend of $0.14 per share on Apollo Inc. stock.
Dec. 31.	The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively.
Year 2
Mar. 14.	Purchased 1,600 shares of Athena Inc. as a trading security at $50 per share plus a $240 brokerage commission.
June 26.	Received an annual dividend of $0.17 per share on Apollo Inc. stock.
July 30.	Sold 300 shares of Athena Inc. for $44 per share less a $90 brokerage commission.
Dec. 31.	The portfolio of trading securities had a cost of $211,075 and a fair value of $205,800, requiring a credit balance in Valuation Allowance for Trading Investments of $5,275 ($211,075 - $205,800). Thus, the debit balance from December 31, Year 1 is to be adjusted to the new balance.

Required:

1. Journalize the entries to record these transactions. For a compound transaction, 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.

Date	Debit	Credit
Year 1
Feb. 14	fill in the blank 2
		fill in the blank 4

Apr. 1	fill in the blank 6
		fill in the blank 8

June 1	fill in the blank 10	fill in the blank 11
	fill in the blank 13	fill in the blank 14
	fill in the blank 16	fill in the blank 17

June 27	fill in the blank 19
		fill in the blank 21

Dec. 31	fill in the blank 23
		fill in the blank 25

Year 2
Mar. 14	fill in the blank 27
		fill in the blank 29

June 26	fill in the blank 31
		fill in the blank 33

July 30	fill in the blank 35	fill in the blank 36
	fill in the blank 38	fill in the blank 39
	fill in the blank 41	fill in the blank 42

Dec. 31	fill in the blank 44
		fill in the blank 46

2. Prepare the investment-related current asset balance sheet presentation for Zeus Investments Inc. on December 31, Year 2.

Zeus Investments Inc. Balance Sheet (selected items) December 31, Year 2
Current Assets:
	fill in the blank 48
	fill in the blank 50
		fill in the blank 52

3. How are unrealized gains or losses on trading investments presented in the financial statements of Zeus Investments Inc.?

Unrealized gains or losses are reported in the , often as .

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