At December 31, 2014, the trading securities for Storrer, Inc. are as follows; Security Cost Fair Value
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Question:
At December 31, 2014, the trading securities for Storrer, Inc. are as follows;
Security | Cost | Fair Value |
---|---|---|
A | $18,000 | $16,200 |
B | $12,000 | $14,300 |
C | $22,600 | $18,800 |
$52,600 | $49,300 |
Required;
Prepare the adjusting entry on December 31, 2014, to report the securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Unrealized gain or loss on trading security is adjusted with the purchase cost of the short-term investment in the security as trading security is reported at the fair-value in the balance sheet.
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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