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Ex 178 eaton company had the following transactions

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Ex. 178Eaton Company had the following transactions pertaining to its short-term stock investments.Jan.1Purchased 900 shares of Stafford Company stock for $11,880 cash.June1Received cash dividends of $0.60 per share on the Stafford Company stock.Sept.15Sold 450 shares of the Stafford Company stock for $5,200.Dec.1Received cash dividends of $0.60 per share on the Stafford Company stock.Instructions(a)Journalize the transactions.(b)Indicate the income statement effects of the transactions.Ans: N/A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSAFOR INSTRUCTOR USE ONLYH-46
Reporting and Analyzing InvestmentsSolution 178(10-15 min.)H-47
Ex. 179Grafton Company had the following transactions pertaining to its short-term stock investments.Jan.1Purchased 2,000 shares of Hortez Company stock for $101,100 cash.June1Received cash dividends of $2.70 per share on the Hortez Company stock.Sept.15Sold 1,000 shares of the Hortez Company stock for $49,600.Dec.31The fair values of the securities totaled $50,800. Prepare the adjusting entry toreport the portfolio at fair value.Instructions(a)Journalize the transactions.(b)Indicate the income statement effects of the transactions.Ans: N/A, LO: 2, 3, Bloom: AP, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSAFOR INSTRUCTOR USE ONLY
Test Bank for Financial Accounting: Tools for Business Decision Making, Eighth Edition

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