Problem
Stuart Corp. purchased 100 shares of Dumb Co. stock for $8 per share and 200 shares of silly Inc., stock for per share. The Dumb Co. stock will be held for least 3 years and is classified as available for-sale, the silly, Inc. stock is classified as trading. As of December 31, the Dumb Co. stock is selling for $9 per share and the Silly Inc. stock is selling for $13 per share. Stuart had net income of $10, 000 before reporting the impact of investment transactions.
Required:
Record the December 31 adjusting entries for investments.
What is Stuart Corp's net income after adjusting for investments?
What is the approximate balances classification for each investment?