During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company...

Question

During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company
invested in securities, as follows:
On Nov. 12 purchased 1,000 shares of common stock as a trading investment, paying $9 per
share.
On Dec. 14 Received cash dividend of $0.32 per share on the trading investment.
On Dec. 31 Adjusted the trading investment to its market value of $7.50 per share.
Required is the list below. (Must Show Work )
1. Prepare T-accounts for: Cash, balance of $20,000; Short-Term Investment; Dividend Revenue;
Unrealized Gain on Investment ( or Unrealized Loss on Investment )
Cash
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 1 Balance $20,000 $20,000
Short Term Investment
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Dividend Revenue
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Unrealized Gain (loss) on Investment
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
2. Journalize the foregoing transactions and post to the T-account.
DATE DESCRIPTION POST
REF
DEBIT
$
CREDIT
$
Nov 12 Short term Investment 9,000
Cash 9,000
To record purchase of 1000
shares
Dec 14 Cash 320
Dividend Revenue 320
To record receipt of dividend
evenue
Dec 31 Unrealized Loss on
Investment
1,500
Market Adjustments -
Trading
1,500
To record unrealized loss on
trading securities
POSTING IN LEDGER ACCOUNTS
Cash
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 1 Balance $20,000 $20,000
12 $9,000 $11,000
Dec 14 ...

David · Accepted Answer

During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company 
invested in securities, as follows: 
On Nov. 12 purchased 1,000 shares of common stock as a trading investment, paying $9 per 
share. 
On Dec. 14 Received cash dividend of $0.32 per share on the trading investment. 
On Dec. 31 Adjusted the trading investment to its market value of $7.50 per share. 
Required is the list below. (Must Show Work ) 
1. Prepare T-accounts for: Cash, balance of $20,000; Short-Term Investment; Dividend Revenue; 
Unrealized Gain on Investment ( or Unrealized Loss on Investment ) 
Cash 
DATE ITEM POST 
REF 
DEBIT CREDIT BALANCE 
            DEBIT CREDIT 
Nov 1 Balance   $20,000   $20,000
        Short Term Investment 
DATE ITEM POST 
REF 
DEBIT CREDIT BALANCE 
            DEBIT CREDIT
        Dividend Revenue 
DATE ITEM POST 
REF 
DEBIT CREDIT BALANCE 
            DEBIT CREDIT
        Unrealized Gain (loss) on Investment 
DATE ITEM POST 
REF 
DEBIT CREDIT BALANCE 
            DEBIT CREDIT
2. Journalize the foregoing transactions and post to the T-account.
DATE DESCRIPTION POST 
REF 
DEBIT     
$ 
CREDIT     
$
Nov 12 Short term Investment   9,000   
    Cash     9,000 
    To record purchase of 1000 
shares
Dec 14 Cash   320   
          Dividend Revenue     320 
    To record receipt of dividend 
revenue
Dec 31 Unrealized  Loss on 
Investment 
  1,500   
      Market Adjustments - 
Trading 
    1,500
To record unrealized loss on 
trading securities
POSTING IN LEDGER ACCOUNTS 
Cash 
DATE ITEM POST 
REF 
DEBIT CREDIT BALANCE 
            DEBIT CREDIT 
Nov 1 Balance   $20,000   $20,000   
  12       $9,000 $11,

During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company invested in securities, as follows: On Nov. 12 purchased 1,000 shares of common stock as a trading...

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