Recognizing Fair Value and the Balance Sheet Presentation of Investments

Stewart Corporation's trading portfolio of stock investments consisted of the following at December 31, 2017:

Stock	Number of Shares	Cost
Conn Common Stock	100	$14,000
Ares Preferred Stock	400	6,000
Hall Common Stock	275	8,250
Pall Common Stock	50	3,000
		$31,250

At year end on December 31, 2017, the fair values per share were:

	Fair Value Per Share
Conn Common Stock	$158
Ares Preferred Stock	$14
Hall Common Stock	$24
Pall Common Stock	$62

INSTRUCTIONS::

(1) On December 31, 2017, prepare any adjusting entry that might be necessary relative to the trading portfolio.

(2) Prepare a partial balance sheet for stewart corporation's showing how the portfolio of investment will be reported (valued) at december 31, 2017

Answer rating: 100% (QA)

Part 1 Adjusting Entry if necessary on December 31 2017 We need to determine if an adjusting entry i... View the full answer