Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 61

Stock investment transactions, trading securities
Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31:


Instructions
1. Journalize the entries to record these transactions.
2. Prepare the investment-related current asset balance sheet presentation for Zeus Investments Inc. on December 31, Year 2.
3. How are unrealized gains or losses on trading investments presented in the financial statements of Zeus Investments Inc.