Question

NEED BALANCE SHEET AND INCOME STATEMENT (INCOME STATEMENT IS NOT SHOWN BUT I NEED IT) PART C AND D D IS NOT SHOWN BECAUSE C NEEDS TO BE CORRECT BUT D IS ASKING FOR INCOME STATEMENT I HAVE PROVIDED ALL DATA

Problem 16-02A a-d (Part Level Submission) (Video) In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 Purchased 600 shares of Muninger common stock for $30,000. Purchased 800 shares of Tatman common stock for $20,000. Purchased 60 $1,160, 7% Yoakem bonds for $69,600. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.70 per share on the Muninger common stock. Sold 200 shares of Muninger common stock at $65 per share. Received a $1 per share cash dividend on the Tatman common stock. Received the semiannual interest on the Yoakem bonds. Sold the Yoakem bonds for $68,600. At December 31, the fair value of the Muninger common stock was $51 per share. The fair value of the Tatman common stock was $24 per share. (a) r answer is correct. Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 1 Stock Investments 30,000 I Cash 30,000 T Mar. 1 A stock Investments 20,000

Answer 1

Sheridan Company Income Statement For the Year Ended December 31, 2020 Divdend revenue Gain on sale of stock investments Interest revenue Revenue Less: Expenses: Loss on sale of debt investments Net income 1,220 3,000 2,436 6,656 1,000 5,656 Sheridan Company Balance Sheet For the Year Ended December 31, 2020 Assets Current assets: Short term investments, at fair value 29,200 (40000-10800) Total current assets 29,200 Total assets 29,200 Liabilities and Shareholders' Equity Current liabilities: Bank overdraft 34,344 Total current liabilities 34,344 Non-current liabilities: Unrealized loss on secutiries -10,800 Total non-current liabilities -10,800 Shareholders' equity Retained earnings 5,656 Total Shareholders' equity 5,656 Total liabilities and shareholders' Equity 29,200 Activate Windows

Dr Dr Cash Stock investments CR 30,000 Stock investments Cash CR 10,000 Dr Beginning Bal. CR 68,600 Beginning Bal. Beginning Bal. Debt investments Cash Loss on sale of debt 69,600 investments 420 Stock investments 20,000 Cash 30,000 Cash 1,000 10,000 Debt investments 69,600 Divdend revenue Stock investments Gain on sale of stock investments Cash 20,000 3,000 800 2,436 Divdend revenue Interest revenue Debt investments 68,600 Ending Bal. Ending Bal. Ending Bal. $ (34,344) 85,256 40,000 50,000 85,256 $ $ 50,000 $ $ 69,600 $ 69,600 Dr Loss on sale of debt investments CR Dr Beginning Bal. Beginning Bal. Beginning Bal. Debt investments 1,000 Ending Bal. Ending Bal. Ending Bal. 1,000 1,000 $ 1,000 $ CR CRI Dr CR Gain on sale of stock investments Beginning Bal. Cash Interest revenue Beginning Bal. Cash 3,000 2,436 Divdend revenue Beginning Bal. Cash Cash 1,220 1,220 420 800 Ending Bal. Ending Bal. Ending Bal. 3,000 3,000 2,436 2,436 $ 1,220 D $ 3,000 $ 2.436

Credit ($) Journal No. Date Account Titles and Explanation 31-Dec Unrealized loss income (51-24)*400 Fair value adjustment trading (To record the fair value adjustmentof securities) Debit ($) 10,800 10,800