Zeus Investments Inc. is a regional investment company that began operations on

Question

Zeus Investments Inc. is a regional investment company that began operations on January 1, 2016. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Record these transactions on page 10: 2016 Feb. 14 Purchased 4,800 shares of Apollo Inc. as a trading security at $26 per share plus a brokerage commission of $192. Apr. 1 Purchased 2,300 shares of Ares Inc. as a trading security at $19 per share plus a brokerage commission of $92. June 1 Sold 600 shares of Apollo Inc. for $32 per share less a $100 brokerage commission. 27 Received an annual dividend of $0.20 per share on Apollo Inc. stock. Dec. 31 The portfolio of trading securities was adjusted to fair values of $33 and $18.50 per share for Apollo Inc. and Ares Inc., respectively. Record these transactions on page 11: 2017 Mar. 14 Purchased 1,200 shares of Athena Inc. as a trading security at $65 per share plus a $120 brokerage commission. June 26 Received an annual dividend of $0.21 per share on Apollo Inc. stock. July 30 Sold 480 shares of Athena Inc. for $60 per share less a $50 brokerage commission. Dec. 31 The portfolio of trading securities had a cost of $200,032 and a fair value of $188,000, requiring a credit balance in Valuation Allowance for Trading Investments of $12,032 ($200,032 - $188,000). Thus, the debit balance from December 31, 2016, is to be adjusted to the new balance. Required: 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, 2017.* 3. How are unrealized gains or losses on trading investments presented in the financial statements of Zeus Investments Inc.? * Refer to the information given and the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. please post how to soluton

Explanation / Answer

JOURNAL Date Debit Credit 2016 Page -- 10 Feb. 14 Stock Investments - Trading $1,24,992         Cash $1,24,992 Apr. 1 Stock Investments - Trading $43,792         Cash $43,792 June. 1 Cash $19,100           Stock Investments - Trading $15,624           Gain on sale of Investments $3,476 June. 27 Cash $840          Dividend Revenue $840 Cost Market price Appolo Inc $1,09,368 $1,38,600 Ares Inc $43,792 $42,550           Total $1,53,160 $1,81,150 Unrealized Gain $27,990 Dec. 31 Market Adjustment - Trading $27,990         Unrealized Gain - Income $27,990 Page -- 11 2017 Mar. 14 Stock Investments - Trading $78,120         Cash $78,120 June. 27 Cash $882          Dividend Revenue $882 July. 30 Cash $28,750 Loss on sale of Investments $2,498            Stock Investments - Trading $31,248 Cost Market price           Total $2,00,032 $1,88,000 Unrealized Loss -$12,032 Dec. 31 Unrealized Loss $12,032          Market Adjustment - Trading $12,032 Balance Sheet (Partial ) Current Assets Stock Investments - Trading $1,88,000

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