Problem:
During the fourth quarter of 20X6, Cablevision, Inc., generated excess cash, which the company invested in securities, as follows:
On Nov. 12 purchased 1,000 shares of common stock as a tradinginvestment, paying $9 per share.
On Dec. 14 Received cash dividend of $0.32 per share on the tradinginvestment.
On Dec. 31 Adjusted the trading investment to its market value of $7.50 per share.
Required is the list below.
Question 1: Prepare T-accounts for: Cash,balance of $20,000; Short-Term Investment; Dividend Revenue; Unrealized Gain on Investment ( or Unrealized Loss on Investment )
Question 2: Journalize the foregoing transactions and post to the T-account.
Question 3: Show how to report the short-term investment on the cablevision balance sheet at December 31.
Question 4: Show how to report whatever should appear on cablevision's income statement.
Question 5: Cablevision sold the trading investment for 8,000 on Jan. 10, 2007. Journalize sale.
Note: Please provide through step by step calculations.