Assessing Financial Statement Effects of Trading & Available-for-Sale Securities

Assessing Financial Statement Effects of Trading and Available-for-Sale Securities Use the financial statement effects template to record the

Assessing Financial Statement Effects of Trading and Available-for-Sale Securities

Use the financial statement effects template to record the following four transactions involving investments in marketable securities. Assume that all these transactions occur in 2018.

  1. Purchased 12,000 common shares of Liu, Inc., at $12 cash per share.
  2. Received a cash dividend of $1.10 per common share from Liu.
  3. Year-end market price of Liu common stock is $11.25 per share.
  4. Sold all 12,000 common shares of Liu for $133,800.

Use negative signs with your answers, when appropriate.

Balance Sheet
Transaction Cash Asset + Noncash

Assets

= Liabilities + Contributed

Capital

+ Earned

Capital

 
(1) Answer -144000

 

  Answer 144000

 

  Answer 0

 

  Answer 0

 

  Answer 0

 

 
(2) Answer 13200

 

  Answer 0

 

  Answer 0

 

  Answer 0

 

  Answer 13200

 

 
(3) Answer 0

 

  Answer -9000

 

  Answer 0

 

  Answer 0

 

  Answer -9000

 

 
(4) Answer 133800

 

  Answer -135800

 

  Answer 0

 

  Answer 0

 

  Answer -1200

 

 

 

Income Statement
 

Revenue

 

 

Expenses

 

=

Net

Income

Answer 0

 

  Answer 0

 

  Answer 0

 

Answer 13200

 

  Answer 0

 

  Answer 13200

 

Answer 0

 

  Answer 9000

 

  Answer -9000

 

Answer 0

 

  Answer 1200

 

  Answer -1200

 

 

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