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Construction Forms Corporation buys securities to be available for sale when circumstances warrant, not to profit from short-term differences in price and not necessarily to hold debt securities to maturity. The following selected transactions relate to investment activities of Construction Forms whose fiscal year ends on December 31. No investments were held by Construction Forms at the beginning of the year.
Required:
1. Prepare the appropriate journal entry for each transaction or event.
2. Show the amounts that would be reported in the company's 2011 income statement relative to these investments.
The stockholders' equity section of Kay Corporation at the end of thecurrent year showed. Calculate the dollar amount to be reported as the preferred stock account balance.
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements?
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