On its December 31, 2019, balance sheet, Your Co. reported its investment in equity securities, (which...

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On its December 31, 2019, balance sheet, Your Co. reported its investment in equity securities, (which had cost $48,000 plus $2,000 in broker fees), at fair value of $62,000. Your Co. does not have significant influence in any of the securities. At December 31, 2020, the fair value of the securities was $60,000 and they reported net income of $5,000. The securities also paid Your Co. $500 in dividends. Record the purchase of the securities. Record the Fair Value Adjustment on December 31, 2019 assuming a $0 balance in the Fair Value Adjustment account. Record journal entries needed on December 31, 2020. On its December 31, 2019, balance sheet, Your Co. reported its investment in equity securities, (which had cost $48,000 plus $2,000 in broker fees), at fair value of $62,000. Your Co. does not have significant influence in any of the securities. At December 31, 2020, the fair value of the securities was $60,000 and they reported net income of $5,000. The securities also paid Your Co. $500 in dividends. Record the purchase of the securities. Record the Fair Value Adjustment on December 31, 2019 assuming a $0 balance in the Fair Value Adjustment account. Record journal entries needed on December 31, 2020.

Answer rating: 100% (QA)

Date December 31 2019 Purchase of equity securities Investment in Equity Securities 50000 Cash 50000 Explanation The cost of the equity securities is ... View the full answer