Reference no: EM133434359
Question: Trading Securities Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on January 1. Assume that the same portfolio was held until the end of the first quarter of the year. The mar- ket value of the portfolio was $980,160,000 at January 31, $940,000,000 at February 29, and $960,000,000 at March 31.
1. Prepare a tabulation showing the balance sheet presentation and income statement presenta- tion for monthly reporting purposes.
2. Show the journal entries for January, February, and March.
3. How would your answer to requirement 1 change if the securities were classified as available- for-sale?