At December 31, 2020, the trading debt securities for Storrer, Inc. are as follows. Instructions a. Prepare

Question:

At December 31, 2020, the trading debt securities for Storrer, Inc. are as follows.

Security Fair Value Cost $16,000 $17,500 A B 12,500 14,000 23,000 21,000 $53,000 $51,000

Instructions
a. Prepare the adjusting entry at December 31, 2020, to report the securities at fair value.
b. Show the balance sheet and income statement presentation at December 31, 2020, after adjustment to fair value.

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...

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