Due Tuesday, October 28, 2008.
Please print your section number
on your homework submission.
You may wish to retain a copy of this homework, as it will not be returned to you prior to
the second prelim.
Joyful Elf Company purchased 1,000 shares of Traskar Inc. for $20 per share on
November 6, 2004.
The shares were regarded as trading securities.
On December 31,
2004, Joyful Elf’s fiscal year end, the market value of the Traskar shares was $12 per
On February 20, 2005, Traskar paid a cash dividend of $1.50 per share to all
On April 17, 2005, Joyful Elf sold the entire Traskar investment for $17
Provide Joyful Elf’s December 31, 2004 journal entry related to the Traskar
Dec. 31, 2004
Holding Loss, TS (tSE)
Provide Joyful Elf’s February 20, 2005 journal entry related to the Traskar
Feb. 20, 2005
Provide Joyful Elf’s April 17, 2005 journal entry related to the Traskar
Apr. 17, 2005
Gain on Sale
What income (or loss) did Joyful Elf show in fiscal 2004 related to the Traskar
What income (or loss) did Joyful Elf show in fiscal 2005 related to the Traskar
$6,500 total gain/income