Prepare the journal entry to record this transaction

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Question - At December 31, 2021, the trading investments for Splish Brothers Inc., are as follows:

Security

Investment Category

Carrying Value

Fair Value

Co. A common shares

FVTPL

$16,500

$14,400

Co. B preferred shares

FVTPL

11,300

12,500

Co. C common shares

FVTOCI

20,500

17,100

Totals

 

$48,300

$44,000

Required -

1. Prepare the adjusting entries required at December 31 to report the above investments at fair value.

2. Show the financial statement presentation of the investments and the holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.)

3. Assuming that on March 20, 2022, Splish Brothers sold Co. B preferred shares for $12,200, prepare the journal entry to record this transaction.

Reference no: EM133060698

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