Problem 3: P10-19A Assignment Background Jetway Corporation generated excess cas

Question

Problem 3: P10-19A Assignment Background Jetway Corporation generated excess cash and used it to invest in various 1 Using the General Journal tab, click Add Transaction to journalize securities. Transactions related to these investments are included in the Transactions section below. The equity investments listed all represent each transaction. Click Post Transaction once you complete the entry then repeat these steps for each transaction 2) Click the Reports tab and review the results of recording these transactions on the General Ledger 3) Click Submit Work when complete less than 20% of the outstanding voting stock of the investee Transactions: 07/02/2018 Purchased 4,200 shares of Pogo, Inc. common stock for $12.00 per share. Jetway plans to sell the stock within three months, when the company will need the cash for normal operations. Jetway does not have significant influence over Pogo 08/21/2018 Received a cash dividend of $.80 per share on the Pogo stock investment. 09/16/2018 Sold the Pogo stock for $13.40 per share 10/01/2018 Purchased a Violet bond for $20,000 at face value. Jetway classifies the investment as trading and short-term SAVE WORK RESET RESULTSSUBMIT WORK BuSINESs REPORTS July 1, 2018-December 31, 2018 COMPANY INFORMATION CHART OF ACCOUNTS GENERAL JOURNAL Date Accounts Debit Credit No transactions in Journal ADD TRANSACTION EoIT CHECKED TRANSACTION DELETE CHECKED T

Explanation / Answer

Date Accounts Title Dr Cr 7/2/2018 Equity Investments $50,400 Cash (4200*$12) $50,400 (being investment made in equity) Note its an trading investment in common stock This account title best suits 2/21/2018 Cash $3,360 Dividend Revenue (4200*.8) $3,360 (being dividend received) 9/16/2018 Cash (4200*13.4) $56,280 Gain on Disposal of Investment $5,880 Equity Investments $50,400 (being investment sold) 10/1/2018 Trading Debt Investment $20,000 Cash $20,000 (being bonds purchased) 12/31/2018 Cash $100 Interest revenue $100 (being interest received) 12/31/2018 Fair value Adjustment Trading $2,000 Unrealized holding gain-Trading $2,000 (22000-20000) If any doubt please comment

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