Kennedy Company has the following portfolio of available-for-sale securities at December 31, 2012. Instructions(a) What should be

Question:

Kennedy Company has the following portfolio of available-for-sale securities at December 31, 2012.

Instructions(a) What should be reported on Kennedy??s December 31, 2012, balance sheet relative to these long-term available-for-sale securities?On December 31, 2013, Kennedy??s portfolio of available-for-sale securities consisted of the following common stocks.

At the end of year 2013, Kennedy Company changed its intent relative to its investment in Frank, Inc. and reclassified the shares to trading securities status when the shares were selling for $8 per share.(b) What should be reported on the face of Kennedy??s December 31, 2013, balance sheet relative to available-for-sale securities investments? What should be reported to reflect the transactions above in Kennedy??s 2013 income statement?(c) Assuming that comparative financial statements for 2012 and 2013 are presented, draft the footnote necessary for full disclosure of Kennedy??s transactions and position in equitysecurities.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...