As at Dec. 31, 2019, the trading equity investment portfolio for Anchor Inc. was as follows.

 

The previous Fair Value Adjustment balance was, Dr. $200

Requirement 1a. 

Prepare the Dec 31, 2019 adjusting entry for Anchor.

Dr.

Cr.

Requirement 1b. 

Journalize the sale of investment “A”, for $15,300 on May 20, 2020.

Dr.

Cr.

Transcribed Image Text:

Investment Cost FMV Unrealized Gain (Loss) $17,500 $15,000 12,500 14,000 23,000 25,500 Total A Investment Cost FMV Unrealized Gain (Loss) $17,500 $15,000 12,500 14,000 23,000 25,500 Total A

Answer rating: 100% (QA)

1 2 Solution 1a Fair value adjustment balance Particulars Debit Credit Opening balance 200 ... View the full answer