Question - During the fourth quarter of 20X6, Cablevision, Inc., generated excess cash, which the company in securities, as follows:
Nov. 12 - Purchased 1,000 shares of common stock as a trading investment, paying $9 per share.
Dec. 14 - Received cash dividend of $0.32 per share on the trading investment.
Dec. 31 - Adjusted the trading investment to its market value of $7.50 per share.
REQUIRED:
1. Prepare T-accounts for: Cash, balance of $20,000; Short-Term Investment; Dividend Revenue; Unrealized Gain on Investment (or Unrealized Loss on Investment)
2. Journalize the foregoing transactions and post to the T-accounts.
3. Show how to report the sort-term investment on the Cablevision balance sheet at December 31.
4. Show how to report whatever should appear on Cablevision's income statement.
5. Cablevision sold the trading investment for $8,000 on January 10, 20X7. Journalize the sale.