What is the approximate balances classification

Reference no: EM131983543

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?

Reference no: EM131983543

Questions Cloud

What is the present value of the tax savings : The company's required rate of return is 13 percent. What is the present value of the tax savings related to depreciation of the equipment?

Explain the crime prevention through environmental design : CPTED strategies rely upon the ability to influence offender decisions that precede criminal acts by affecting the built, social and administrative environment.

Create income statements using absorption costing : Create income statements using absorption costing, assuming that Stuart Glass makes 1,000, 1,250, and 1,500 lamps during the year.

Discuss about the mobile commerce technologies : Your company is experiencing decline in business because of competition. Your manager thinks they may be able to turn the company around.

What is the approximate balances classification : What is Stuart Corp's net income after adjusting for investments? What is the approximate balances classification for each investment?

Role of decision support system in a business organisation : Characteristics and role of the system in a business organisation - Transactional Processing System (TPS) and Management Information System

Is the company caterpillar practicing global production : Is the company Caterpillar practicing global production? If so, is Caterpillar producing globally, what goods and services are produced globally and in which co

Why teamwork is important to effectively solve the problems : Explain why teamwork is important to effectively solve the problems which field testing of the hip replacement navigation system revealed.

Is the company caterpillar practicing global procurement : Is the company Caterpillar practicing global procurement? If the so, is Caterpillar procuring globally, what goods and services is it procuring?

User Account

All Pages