Lionel Company began operations in 2014. At 12/31/20, Lionel had a debit balance of $32,000 in...

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Lionel Company began operations in 2014. At 12/31/20, Lionel had a debit balance of $32,000 in its Allowance for Adjustment to Market. At January 1, 2020, Lionel owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) JKH Preferred (1,900 shares) EKH Common (7,500 shares) $525,000 200,000 82,000 During 2020, the following events occurred: Sold 4,000 shares of MJO for $86,000. Acquired 1,500 shares of WVO Common for $28 per share. 4/3/20 9/6/20 At 12/31/20, the fair values for Lionel's securities were: MJO Common, $23 per share JKH Preferred, $104 per share EKH Common, $14 per share WVO Common, $30 per share Required: a. Prepare any journal entries required in 2020 to record the securities activity, including any required adjusting entries at 12/31/20. Show any calculations. b. Show the financial statement presentation for all securities activity during 2020. Lionel Company began operations in 2014. At 12/31/20, Lionel had a debit balance of $32,000 in its Allowance for Adjustment to Market. At January 1, 2020, Lionel owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) JKH Preferred (1,900 shares) EKH Common (7,500 shares) $525,000 200,000 82,000 During 2020, the following events occurred: Sold 4,000 shares of MJO for $86,000. Acquired 1,500 shares of WVO Common for $28 per share. 4/3/20 9/6/20 At 12/31/20, the fair values for Lionel's securities were: MJO Common, $23 per share JKH Preferred, $104 per share EKH Common, $14 per share WVO Common, $30 per share Required: a. Prepare any journal entries required in 2020 to record the securities activity, including any required adjusting entries at 12/31/20. Show any calculations. b. Show the financial statement presentation for all securities activity during 2020.

Answer rating: 100% (QA)

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