e http://ezto.mheducation.com/hm.tpx oExam 3 Chapters 10 connect. ACCOUNTING 3 C

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e http://ezto.mheducation.com/hm.tpx oExam 3 Chapters 10 connect. ACCOUNTING 3 Chapters 10-13 Appendix D IThe following information applies to the questions displayed below The following information applies to the questions displayed below On August 4, 2014, Cable Corporation purchased 2,600 shares of Satre Company for $98,800. The following information applies to the fair value of Satre Company 12/3/2014 12/31/2015 12/31/2016 Per Share $ 50 42 34 Satre Company declares and pays cash dividends of $4 per share on June 1 of each year. Required: 1. Prepare jounal entries to record the facts in the case, assuming that Cappio considers the shares to be available-for-sale secunties TIP Net unrealized losses/gains on available-for-sale securities are reported in stockholders' equity. (If no entry is required for a transactionlevent, select No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of 2,600 shares of Maxwell Company for $98,800. The company considers the shares to be available-for-sale securities

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Anwer to part 1

Anwer to part 3

Date General Journal Debit Credit August 04, 2014 Investment- Available for sale $98,800           Cash (2600 x $38) $98,800 December 31, 2014 Investment- Available for sale $31,200 Unrealised gain/loss- Other comprehensive income $31,200 ( $50 - $38 ) x 2600 June 1, 2015 Cash $10,400          Dividend Income (2600 x $4) $10,400 December 31, 2015 Unrealised gain/loss- Other comprehensive income $20,800             Investment- Available for sale $20,800 ( $50 - $42 ) x 2600 June 1, 2016 Cash $10,400          Dividend Income (2600 x $4) $10,400 December 31, 2015 Unrealised gain/loss- Other comprehensive income $20,800             Investment- Available for sale $20,800 ( $42 - $34 ) x 2600

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