Cantor Corporation's balance sheet at December 31, 2016, showed the following:
Short-term investments, at fair value $46,500
Cantor Corporation's equity portfolio of investments consisted of the following at December 31, 2016: During 2017, the following transactions took place: At year end on December 31, 2017, the fair values per share were: $$\begin{array}{l}
&\text { Fair Value Per Share }\
\text { Interstate Common Stock } & \$ 151.00 \
\text { Danforth Delta Preferred Stock } & \$ 13.00 \
\text { Georgia Common Stock } & \$ 33.00
\end{array}$$ Instructions
(a) Prepare the journal entries to record the 2017 stock transactions.
(b) On December 31, 2017, prepare any adjusting entry that might be necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Cantor Corporation's balance sheet at December 31, 2017.

Question

Cantor Corporation's balance sheet at December 31, 2016, showed the following:
Short-term investments, at fair value $46,500
Cantor Corporation's equity portfolio of investments consisted of the following at December 31, 2016:  During 2017, the following transactions took place:  At year end on December 31, 2017, the fair values per share were: $$\begin{array}{l}
&\text { Fair Value Per Share }\
\text { Interstate Common Stock } & \$ 151.00 \
\text { Danforth Delta Preferred Stock } & \$ 13.00 \
\text { Georgia Common Stock } & \$ 33.00
\end{array}$$ Instructions
(a) Prepare the journal entries to record the 2017 stock transactions.
(b) On December 31, 2017, prepare any adjusting entry that might be necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Cantor Corporation's balance sheet at December 31, 2017.

Quizplus · Accepted Answer

The Answer of Cantor Corporation's balance sheet at December 31, 2016, showed the following:
Short-term investments, at fair value $46,500
Cantor Corporation's equity portfolio of investments consisted of the following at December 31, 2016:  During 2017, the following transactions took place:  At year end on December 31, 2017, the fair values per share were: $$\begin{array}{l}
&\text { Fair Value Per Share }\
\text { Interstate Common Stock } & \$ 151.00 \
\text { Danforth Delta Preferred Stock } & \$ 13.00 \
\text { Georgia Common Stock } & \$ 33.00
\end{array}$$ Instructions
(a) Prepare the journal entries to record the 2017 stock transactions.
(b) On December 31, 2017, prepare any adjusting entry that might be necessary relative to the trading portfolio.
(c) Show how the stock investments will appear on Cantor Corporation's balance sheet at December 31, 2017.

Cantor Corporation's Balance Sheet at December 31, 2016, Showed the Following