What the adjusting entry to report investment securities

Assignment Help Financial Accounting
Reference no: EM133005861

On December 1, 2020, Pearl Co. purchased equity securities as trading securities. On December 31, 2020, the cost of the securities was as follows:

Security A: $255,000; Security B: $152,000 and Security C : $375,000.

The fair value of these securities at December 31, 2020 were;

Security A: $250,000; Security B: $170,000 and Security C: $230,000.

Problem 1: The adjusting entry to report investment securities at fair value on December 31, 2020 is

Select one:

a. Fair Value Adjustment-Trading______________________122,000
Unrealized Gain or Loss - Income_________________________122,000

b. Unrealized Loss - Income__________________________132,000
Fair Value Adjustment-Trading____________________________132,000

c. Fair Value Adjustment - Trading____________________100,000
Unrealized Gain - Income________________________________100,000

d. Unrealized Gain or Loss - Equity___________________130,000
Fair Value Adjustment-Trading___________________________130,000

Reference no: EM133005861

Questions Cloud

What is the amount of consolidated bond interest expense : What is the amount of consolidated bond interest expense that would appear on the consolidate Income Statement as of December 31, 2020
What factors should they consider if they want to buy now : QUESTION - James earns $80,000 per annum and Deborah earns $65,000 per annum. What factors should they consider if they want to buy now
Prepare statement of cash flows for the year ended December : Old equipment with an original cost of $34,900 was sold for $8,922. Prepare a statement of cash flows for the year ended December 31, 2017
The legal aspects of compliance in healthcare : The Legal Aspects of Compliance in Healthcare - Health sector reforms will have to address the need for increased public spending on health care.
What the adjusting entry to report investment securities : What the adjusting entry to report investment securities at fair value on December 31, 2020 is? Pearl Co. purchased equity securities as trading securities.
Determine the no of orders per year : The annual demand for a product is 6400 units. Inventory carrying cost is Rs. 1.50 per unit per annum. Determine the No of orders per year
Exhausting administrative remedies : If an employee files a lawsuit against their employer after exhausting their administrative remedies, the case is handled by the court as if there had not alrea
Record the transactions in bridgeport books : Record the above transactions in Bridgeport's books and in the books of Sarasota. Both companies use the periodic inventory system.
List any concerns have on the business : List any concerns have on the business. The only question he asked you is to express your views about the job and explain if you have any concerns.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd