Reference no: EM133077656

Question - The VanDuzer Company has the following footnote to its financial statements:

The company holds the following short-term investments at December 31 (in thousands):

Cost Market Value Trading securities 

U.S. government bonds $670,000 $680,000

Held-to-maturity securities 

Bonds issued by Beta Corp. 540,000 560,000

Available-for-sale securities 

Common shares of Gamma Corp. 600,000 770,000

Compute the amount that VanDuzer would show on its balance sheet for short-term investments.

Suppose the market values of the three securities at the beginning of the year had been as follows (in thousands):

U.S. government bonds $700,000

Bonds issued by Beta Corp. 580,000

Common shares of Gamma Corp. 710,000

Prepare journal entries to recognize the changes in market values that would be recorded in VanDuzer's books at the end of the year.