Fernandez Corp. invested its excess cash in securities during 2025. As of December 31, 2025, the securities
Question:
Fernandez Corp. invested its excess cash in securities during 2025. As of December 31, 2025, the securities portfolio consisted of the following common stocks. Fernandez does not have significant influence in any of these companies.
Instructions
a. What should be reported on Fernandez’s December 31, 2025, balance sheet relative to these securities? What should be reported on Fernandez’s 2025 income statement?
On December 31, 2026, Fernandez’s securities portfolio consisted of the following common stocks.
During the year 2026, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company.
b. What should be reported on Fernandez’s December 31, 2026, balance sheet? What should be reported on Fernandez’s 2026 income statement?
On December 31, 2027, Fernandez’s securities portfolio consisted of the following common stocks.
During the year 2027, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700.
c. What should be reported on the face of Fernandez’s December 31, 2027, balance sheet? What should be reported on Fernandez’s 2027 income statement?
Step by Step Answer:
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield