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HomeworkAnswers - a. Investments classified as trading...

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Unformatted text preview: a. Investments classified as trading Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabi- lities + Contrib. Capital + Retained Earnings Revenues Expenses 1. Ohlson Co. purchases 5,000 common shares of Freeman Co. at $16 cash per share - 80,000 +80,000 Investment 2. Ohlson Co. receives a cash dividend of $1.25 per common share from Freeman +6,250 +6,250 Retained Earnings +6,250 Dividend Income 3. Yearend market price of Freeman common stock is $17.50 per share +7,500 Investment +7,500 Retained Earnings +7,500 Unrealized gain 4. Ohlson Co. sells all 5,000 common shares of Freeman for $86,400 cash +86,400- 87,500 Investment- 1,100 Retained Earnings +1,100 Loss on Sale b. Investments classified as available-for-sale Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabi- lities + Contrib. Capital + Retained Earnings Revenues Expenses 1. Ohlson Co....
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This note was uploaded on 03/12/2011 for the course BUS 100 taught by Professor Various during the Spring '11 term at Hardin-Simmons.

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HomeworkAnswers - a. Investments classified as trading...

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