Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 2

Stock investment transactions, trading securities
Scofield Financial Co. is a regional insurance company that began operations on January 1, 2014. The following transactions relate to trading securities acquired by Scofield Financial Co., 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 Scofield Financial Co. on December 31, 2015.
3. How are unrealized gains or losses on trading investments presented in the financial statements of Scofield Financial Co.