Question: Accounting for trading investments On February 1, 2016, Mill Co. decides to invest excess cash of $27,300 by purchasing 1,300 shares of Grant, Inc. stock at $21 per share. At year-end, December 31, 2016, Grant's market price was $34 per share. The investment is categorized as a trading investment. Requirements
1. Journalize the transactions for Mill's investment in Grant, Inc. for 2016.
2. In what category and at what value would Mill report the asset on the December 31, 2016, balance sheet? In what account would the market price change in Grant's stock be reported, if at all?
3. What was the net effect of the investment on Mill's net income for the year ended December 31, 2016?