Accounting for available-for-sale investments

Assignment Help Accounting Basics

Reference no: EM131819549

Question: Accounting for available-for-sale investments On July 1, 2016, Bella's Restaurant decides to invest excess cash of $51,200 from the tourist season by purchasing 3,200 shares of Wolf, Inc. stock at $16 per share. At yearend, December 31, 2016, Wolfs market price was $15 per share. The investment is categorized as an available-for-sale investment and will be held for the short-term.

Requirements: 1. Journalize the transactions for Bella's investment in Wolf, Inc. for 2016.

2. In what category and at what value would Bella report the asset on the December 31, 2016, balance sheet? In what account would the market price change in Wolf's stock be reported, if at all?

3. What was the net effect of the investment on Bella's net income for the year ended December 31, 2016?

Reference no: EM131819549

Questions Cloud

In what account would the market price change : 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.

What capabilities can you envision : What common objects do you think might benefit from an embedded computer? What capabilities can you envision?

Research a terrorist case in which a defendant was identify : Identifying and determining why one becomes a terrorist can be as problematic as defining terrorism itself.

Convert miles to kilometers and kilometers to miles : Justin Kace is promoting the metric system and wants people to be able to convert miles to kilometers and kilometers to miles.

Accounting for available-for-sale investments : Accounting for available-for-sale investments On July 1, 2016, Bella's Restaurant decides to invest excess cash of $51,200 from the tourist season.

Distribution of remaining cash to appropriate partners : additional investment of deficient but solvent partner and distribution of remaining cash to appropriate partners

What advantages to dynamic routing : What advantages to dynamic routing? When would you not use dynamic routing? Give examples and support your position.

Calculate a speculator-expecting mexican peso to appreciate : calculate A speculator, expecting Mexican Peso to appreciate in near future, bought five Septhe total $ profits or loss, and % rate of return on equity.

Journalize transaction related to graham disposition of bond : Accounting for bond investments Graham purchased a bond on January 1, 2016, for $140,000. The bond has a face value of $140,000 and matures in 15 years.

User Account

All Pages