Beckham Investments paid $104,000 for a short-term trading investment in IBM stock. 1. Suppose the IBM stock

Question:

Beckham Investments paid $104,000 for a short-term trading investment in IBM stock.
1. Suppose the IBM stock decreased in value to $98,000 at December 31. Make the Beckham journal entry to adjust the Short-Term Investment account to market value.
2. Show how Beckham would report the short-term investment on its and the unrealized gain or loss on its income statement.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...