A company invests in stock of other companies for trading purposes. Its accounting year ends December 31. Its investment activity during 2019, 2020, and 2021 is as follows: a. Purchased stock of Acme Company in 2019 for $250,000 for the purpose of taking advantage of short-term volatility in the market place. . Sold the investment shortly after purchase for $235,000. E. Purchased stock of Beeber Company in 2019 for $300,000. 1. The investment had a fair value of $275,000 at the end of 2019. e. It was sold for $310,000 in late 2020. f. Purchased stock of Cromwell Company in 2019 for $500,000. g. Its fair value and the end of 2019 was $520,000. 1. Its fair value and the end of 2020 $460,000. i. The investment was sold for $480,000 in 2021. Prepare the entries necessary to report the above entries in either a T-account or spreadsheet format.

Presented below is information related to the purchases of common stock by Cheyenne Company during 2020.     Cost(at purchase date)   Fair Value(at December 31) Investment in Arroyo Company stock   $97,000   $76,000 Investment in Lee Corporation stock   266,000   311,000 Investment in Woods Inc. stock   176,000   185,000     Total   $539,000   $572,000 (Assume a zero balance for any Fair Value Adjustment account.) (a)   What entry would Cheyenne make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (b)   What entry would Cheyenne make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Cheyenne did not select the fair value option for these investments? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0…

Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions: Dec. 10 Purchased 500 shares of Carroll Company common stock for $76 per share. Dec. 21 Purchased 800 shares of Dynamo Company common stock for $34 per share.   At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share.   a. Prepare journal entries to record the December 2019 transactions. b. Show how the bank reports the equity securities on its December 31, 2019, balance sheet.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.  Mar.   31   Acquired 5% Distribution Transformers Corporation bonds costing $410,000 at face value. Sep.   1   Acquired $915,000 of American Instruments’ 8% bonds at face value. Sep.   30   Received semiannual interest payment on the Distribution Transformers bonds. Oct.   2   Sold the Distribution Transformers bonds for $436,000. Nov.   1   Purchased $1,410,000 of M&D Corporation 3% bonds at face value. Dec.   31   Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:…