Sunny Summerland Company has the following data of their investment on December 31, 2020, 

Securities Cost Fair Value

Share A (Trading) $ 450,000 $ 402,000 

Share B (Non-Trading) $ 285,000 $ 315,000 

The non-trading securities are held as a long-term investment. 2020 is the first year of Sunny Summerland’s operation.

 Required: 

a. Journalize the adjusting entries to report each type of security at fair value and give your explanation.

b. Show the statement of presentation of each type of securities and the related unrealized gain (loss) accounts and give your interpretation.

Answer rating: 100% (QA)

A No Account Titles and Explanation Debit Credit 1 F... View the full answer