Question

trader investments completed the following investment transactions during 2018:

Requirement 1. Journal Trader's investment transactions. Exple fons are not required. (Record debits first, then credits. Exclude explanations from joumal entries. If no entry is required, select your on the first line of the Accounts column and leave the remaining celank.) Jan. 14: Purchased 300 shares of Tycon stock, paying 543 persha The investment represents 2% ownership in Tycon's voting stock. Trader does not have significant influence over Tycon. Trader intends to hold the investment for the indefinite future. Debit Credit Aug. 22: Received a cash dividend of $0.72 per share on the Tycon ock Debit Crec Aug. 22

Answer 1

Journal Entries- Traders Investment
Date	Particulars		Debit	Credit
14-Jan	Available for sale - investment (300X 43)		$12,900.00
	Cash			$12,900.00
	TO Record Purchase of Investment
22-Aug	Cash (300*0.72))		$216.00
	Dividend			$216.00
	TO Record Dividend Received
31-Dec	Unrealised holding loss -available for sale (300*1)		$300.00
	Fair value adjustment available for sale			$300.00
	TO Record Adjustment in Fair Value
2) Balance Sheet (Partial)
Long term Investment
Available for sale - Investment (at fair value)			$300.00
3) Income Statement
Net income			$420,000.00
Other Income/expenses
unrealised holding loss			-$300.00
Dividend Revenue			$216.00
Comprehensive income			$419,916.00