FKG Inc. carries the following debt investments on its books at December 31, 2015, and December 31, 2016. All securities were purchased during 2015.

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Trading Securities: Company A Company Cost Value, Dec. 31, 2015 Value, Dec. 31, 2016 $25,000 $13,000 $35,000 $13,000 $20,000 $20,000 $20,000 $25,000 B Company C Company $30,000 Available for Sale Securities: Value, Dec. 31, 2015 $230,000 Value, Dec. 31, 2016 $50,000 $70,000 Cost Company X Company Y Company $210,000 $50,000 S60,000 Required: (1.) Prepare the necessary journal entries for FKG on December 31, 2015. Trading Securities: Company A Company Cost Value, Dec. 31, 2015 Value, Dec. 31, 2016 $25,000 $13,000 $35,000 $13,000 $20,000 $20,000 $20,000 $25,000 B Company C Company $30,000 Available for Sale Securities: Value, Dec. 31, 2015 $230,000 Value, Dec. 31, 2016 $50,000 $70,000 Cost Company X Company Y Company $210,000 $50,000 S60,000 Required: (1.) Prepare the necessary journal entries for FKG on December 31, 2015.

Answer rating: 100% (QA)

1 Journal entries Debit Credit 2006 Unrealised holding loss on investments 12000 Investment in A 120... View the full answer