Jackson Barton is the CFO of Games Inc. a software company that designs video games. His company
Question:
Jackson Barton is the CFO of Games Inc. a software company that designs video games. His company uses investments to manage their cash and he has presented you with the following financial information about the investments Games Inc. has on December 31, 2019. This is the first year Games Inc. has invested in securities.
Required:1. Make the necessary entries if the Market Value Method was used.2. Given your entries in requirement 1, show how information about these securities would be reported on the financial statements of Games Inc.3. Make the necessary entries if the Fair Value Option was used to account for these securities.4. Given your entries in requirement 3, show how information about these securities are reported on Games Inc.’s financial statements if the Fair Value Option was used.
Step by Step Answer:
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines