During the fourth quarter of 2013 the operations of Baris

#6631
During the fourth quarter of 2013, the operations of Baris Carpet Centre generated excess cash,
which the company invested in securities, as follows:Dec. 10 Purchased 2,500 common shares
as a held-for-trading investment, paying $15 per share.17 Received cash dividend of $0.50 per
share on the held-for-trading investment.31 Adjusted the held-for-trading investment to its fair
value of $40,000.Requirements1. Prepare T-accounts for Cash, balance of $85,000; Short-
Term Investment; Dividend Revenue; and Unrealized Gain on Investment or Unrealized Loss on
Investment.2. Journalize the foregoing transactions, and post to the T-accounts.3. Show how to
report the short-term investment on Baris's balance sheet at December 31.4. Show how to
report whatever should appear on Baris's income statement.5. On January 6, 2014, Baris sold
the held-for-trading investment for $36,000. Journalize the sale.View Solution:
During the fourth quarter of 2013 the operations of Baris

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