During the fourth quarter of 2016, Abbott, Inc., generated excess cash, which the company invested in trading securities as follows: Nov 16 Purchased 900 common shares as an investment in trading securities, paying $9 per share. Dec 16 Received cash dividend of $0.35 per share on the trading securities. Dec 31 Adjusted the trading securities to fair value of $5 per share. Requirements 1. Open T-accounts for Cash (including its beginning balance of $19,000), Investment in Trading Securities, Dividend Revenue, and Unrealized Gain (Loss) on Trading Securities. 2. Journalize the foregoing transactions and post to the T-accounts. 3. Show how to report the short-term investment on Abbott s balance sheet at December 31, 2016. 4. Show how to report whatever should appear on Abbott s income statement for the year ended December 31, 2016. 5. Abbott sold the trading securities for $6,300 on January 14, 2017. Journalize the sale. 6. Assume that the securities were classified as available-for-sale. Further, assume that the fair value was $10 per share on December 31, 2017, and $10.50 per share on January 1, 2018, when they were sold. Repeat steps 3-4 for 2016 and 2017, and journalize the sale of the se-curities on January 1, 2018. Follow the example in Exhibit 5-2.
https://trustedpaperwriters.com/wp-content/uploads/2019/12/157544039158860773-300x54.png 0 0 Steve Kamau https://trustedpaperwriters.com/wp-content/uploads/2019/12/157544039158860773-300x54.png Steve Kamau2021-02-04 16:27:492021-02-04 16:27:49During the fourth quarter of 2016, Abbott, Inc., generated excess cash, which the company invested..