During 2012 xyz paid 0.20 in dividends per share and abc, Ask an Expert

Accounting

Jones Inc. had the following transactions during 2012:

1. Purchased 10,000 shares of XYZ Inc. for $4 each. The investment was accounted for as trading securities.

2. Purchased 5,000 shares of ABC Inc. for $7.50 each. The investment was accounted for as available-for-sale securities.

During 2012, XYZ paid $0.20 in dividends per share and ABC paid $.50 in dividends per share. As of December 31, 2012 the fair market value of XYZ Inc. was $4.25 per share and the fair market value of ABC Inc. was $6.75 per share.

Required:

1. What will be reported on the Income Statement?

2. What will be reported as the balance in the investment accounts?

3. What amount will be reported as other comprehensive income?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M949848

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