P17.11

(LO 2, 4 ) (Equity SecuritiesStatement Presentation) Fernandez Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks.

Security	Quantity	Cost	Fair Value
Lindsay Jones, Inc.	1,000 shares	$15,000	$21,000
Poley Corp.	2,000 shares	40,000	42,000
Arnold Aircraft	2,000 shares	72,000	60,000
		Totals $127,000	$123,000

Instructions

a.

What should be reported on Fernandez's December 31, 2020, balance sheet relative to these securities? What should be reported on Fernandez's 2020 income statement?

On December 31, 2021, Fernandez's securities portfolio consisted of the following common stocks.

Security	Quantity	Cost	Fair Value
Lindsay Jones, Inc.	1,000 shares	$15,000	$20,000
Lindsay Jones, Inc.	2,000 shares	33,000	40,000
Duff Company	1,000 shares	16,000	12,000
Arnold Aircraft	2,000 shares	72,000	22,000
		Totals $136,000	$94,000

During the year 2021, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company.

b.

What should be reported on Fernandez's December 31, 2021, balance sheet? What should be reported on Fernandez's 2021 income statement?

On December 31, 2022, Fernandez's securities portfolio consisted of the following common stocks.

Security	Quantity	Cost	Fair Value
Arnold Aircraft	2,000 shares	$72,000	$82,000
Duff Company	500 shares	8,000	6,000
		Totals $80,000	$88,000

During the year 2022, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700.

c.

What should be reported on the face of Fernandez's December 31, 2022, balance sheet? What should be reported on Fernandez's 2022 income statement?