Required: 1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places and round your final answers to the nearest dollar. 2. Prepare the Trading Investments section of the December 31, 2013, balance sheet for Rios Co. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Colons () will fill in where needed. 3. How are unrealized gains or losses on trading investments presented on the financial statements of Rios Co.?
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- Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: Record these transactions on page 10: 20Y2 Feb. 1 Purchased 4,900 shares of Caldwell Inc. common stock at $35 per share plus a brokerage commission of $490. Caldwell has 100,000 shares of common stock outstanding. May 1 Purchased securities of Holland Inc. as a trading investment for $84,798. July 1 Sold 2,550 shares of Caldwell Inc. for $33 per share less a $95 brokerage commission. 31 Received an annual dividend of $0.30 per share on 2,350 shares of Caldwell Inc. stock. Nov. 15 Sold the remaining shares of Caldwell Inc. for $36 per share less a $75 brokerage commission. Dec. 31 The trading securities of Holland Inc. have a fair value on December 31 of $77,865. Record these transactions on page 11: 20Y3…Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: Record these transactions on page 10: 20Y2 Feb. 1 Purchased 7,500 shares of Caldwell Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding. May 1 Purchased securities of Holland Inc. as a trading investment for $126,000. July 1 Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission. 31 Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell Inc. stock. Nov. 15 Sold the remaining shares of Caldwell Inc. for $51 per share less a $90 brokerage commission. Dec. 31 The trading securities of Holland Inc. have a fair value on December 31 of $120,000. Record these transactions on page 11: 20Y3 Apr. 1…Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: Record these transactions on page 10: 20Y2 Feb. 1 Purchased 6,600 shares of Caldwell Inc. common stock at $43 per share plus a brokerage commission of $660. Caldwell has 100,000 shares of common stock outstanding. May 1 Purchased securities of Holland Inc. as a trading investment for $82,998. July 1 Sold 3,430 shares of Caldwell Inc. for $41 per share less a $115 brokerage commission. 31 Received an annual dividend of $0.25 per share on 3,170 shares of Caldwell Inc. stock. Nov. 15 Sold the remaining shares of Caldwell Inc. for $44 per share less a $95 brokerage commission. Dec. 31 The trading securities of Holland Inc. have a fair value on December 31 of $74,343. Record these transactions on page 11: 20Y3 Apr. 1 Purchased…
- Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Rios Financial Co., which has a fiscal year ending on December 31:Year 1Feb. 1. Purchased 7,500 shares of Caldwell Inc. as a trading security at $50 per share plus a brokerage commission of $75.May 1. Purchased 3,000 shares of Holland Inc. as a trading security at $42 plus a brokerage commission of $90.July 1. Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission.31. Received an annual dividend of $0.50 per share on Caldwell Inc. stock.Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $40per share for Caldwell Inc. and Holland Inc., respectively.Year 2Apr. 1. Purchased 5,000 shares of Fuller Inc. as a trading security at $25 per share plus a $100 brokerage commission.July 31. Received an annual dividend of $0.52 per share on Caldwell Inc. stock.Oct. 14. Sold…Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Rios Financial Co., which has a fiscal year ending on December 31: Record these transactions on page 10: Year 1 Feb. 1. Purchased 4,900 shares of Caldwell Inc. as a trading security at $35 per share plus a brokerage commission of $490. May 1. Purchased 1,800 shares of Holland Inc. as a trading security at $47 plus a brokerage commission of $198. July 1. Sold 2,550 shares of Caldwell Inc. for $33 per share less a $95 brokerage commission. 31. Received an annual dividend of $0.30 per share on Caldwell Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $33 and $46 per share for Caldwell Inc. and Holland Inc., respectively. Record these transactions on page 11: Year 2 Apr. 1. Purchased 4,800 shares of Fuller Inc. as a trading security at $26…M1) Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: 20Y2Feb. 1. Purchased 7,500 shares of Caldwell Inc. common stock at $50 per shares plus a brokerage commission of $75. Caldwell has 100,000 share of common stock outstanding.July 1. Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission. 31. Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell Inc. stock.Nov. 15. Sold the remaining shares of Caldwell Inc. for $51 per share less a $90 brokerage commission.20Y3Dec. 31. The fair values of the Holland Inc. and Fuller Inc. securities are as follows: Issuing Company Cost Fair Value Holland Inc. $126,000 $132,500 INSTRUCTIONS Journalize the entries to record the preceding transactions, including any…
- Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Rios Financial Co., which has a fiscal year ending on December 31: Record these transactions on page 10: Year 1 Feb. 1. Purchased 7,500 shares of Caldwell Inc. as a trading security at $50 per share plus a brokerage commission of $75. May 1. Purchased 3,000 shares of Holland Inc. as a trading security at $42 plus a brokerage commission of $90. July 1. Sold 4,500 shares of Caldwell Inc. for $46 per share less a $110 brokerage commission. 31. Received an annual dividend of $0.50 per share on Caldwell Inc. stock. Dec. 31 The portfolio of trading securities was adjusted to fair values of $47 and $40 per share for Caldwell Inc. and Holland Inc., respectively. Record these transactions on page 11: Year 2 Apr. 1. Purchased 5,000 shares of Fuller Inc. as a trading security at $25…Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31:Year 1Feb. 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.Year 2Mar. 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.…Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,600 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $720. Apr. 1. Purchased 1,700 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $340. June 1. Sold 900 shares of Apollo Inc. for $44 per share less an $120 brokerage commission. June 27. Received an annual dividend of $0.14 per share on Apollo Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 1,600 shares of Athena Inc. as a trading security at $50 per share plus a $240 brokerage commission. June 26. Received an annual dividend of $0.17 per…
- Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,400 shares of Apollo Inc. as a trading security at $38 per share plus a brokerage commission of $680. Apr. 1. Purchased 1,600 shares of Ares Inc. as a trading security at $15 per share plus a brokerage commission of $320. June 1. Sold 800 shares of Apollo Inc. for $39 per share less an $100 brokerage commission. June 27. Received an annual dividend of $0.11 per share on Apollo stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $42 and $16 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 1,500 shares of Athena Inc. as a trading security at $44 per share plus a $225 brokerage commission. June 26. Received an annual dividend of $0.14 per share…Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 1,800 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $360. Apr. 1. Purchased 900 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $180. June 1. Sold 400 shares of Apollo Inc. for $44 per share less an $50 brokerage commission. June 27. Received an annual dividend of $0.13 per share on Apollo Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 800 shares of Athena Inc. as a trading security at $50 per share plus a $120 brokerage commission. June 26. Received an annual dividend of $0.16 per share…Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 1,800 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $360. Apr. 1. Purchased 900 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $180. June 1. Sold 400 shares of Apollo Inc. for $44 per share less an $50 brokerage commission. June 27. Received an annual dividend of $0.13 per share on Apollo Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 800 shares of Athena Inc. as a trading security at $50 per share plus a $120 brokerage commission. June 26. Received an annual dividend of $0.16 per share…