During 2021, Christenson Company Had the Following Transactions Relating to Its

question 65

Essay

During 2021, Christenson Company had the following transactions relating to its investments held for trading:
Feb 1 Purchased 1,500 common shares of Ken Corp for $ 12 each.
May 20 Purchased 3,400 shares of Cassandra Corp for $ 22 each.
Jul 1 Received dividends totalling $ 800 from Ken Corp.
Sep 10 Sold 1,000 shares of the investment in Cassandra Corp for $ 20.50 per share.
Nov 30 Sold 800 shares Cassandra Corp for $ 22.50 per share.
On December 31, Christenson's year end, the Ken Corp shares are trading at $ 10 and the Cassandra Corp shares are trading at $ 24.
Instructions
a) Record the transactions and prepare any adjusting entries required at December 31, 2021.
b) Determine the amounts to be reported on Christenson's balance sheet and income statement at December 31, 2021 related to its investment in equity securities.

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Definitions:

Short-Run Aggregate Supply

Represents the total output of goods and services produced in an economy at different price levels over a short period, during which some factors of production are fixed.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, at different possible price levels.

Money Supply

The money supply refers to the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Natural Rate

Natural Rate often refers to the natural rate of unemployment, which is the level of unemployment consistent with sustainable economic growth, where inflation is stable.