Stuart Corp. purchased 100 shares of Dumb Co. stock for $8 per share and 200 shares of Silly Inc. stock for $12 per share. The Dumb Co. stock and the Silly, Inc. stock is classified as trading. As of December 31, the Dumb Co. stock is selling for $9 per share and the Silly Inc. stock is selling for $13 per share. Stuart had net income of $10,000
before reporting the impact of investment transactions.
Required:
a. Record the December 31 adjusting entries for investments.
b. What is Stuart Corp.'s net income after adjusting for investments?
c. What is the appropriate balance sheet presentation for these investments?

Question

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The Answer of Stuart Corp. purchased 100 shares of Dumb Co. stock for $8 per share and 200 shares of Silly Inc. stock for $12 per share. The Dumb Co. stock and the Silly, Inc. stock is classified as trading. As of December 31, the Dumb Co. stock is selling for $9 per share and the Silly Inc. stock is selling for $13 per share. Stuart had net income of $10,000
before reporting the impact of investment transactions.
Required:
a. Record the December 31 adjusting entries for investments.
b. What is Stuart Corp.'s net income after adjusting for investments?
c. What is the appropriate balance sheet presentation for these investments?