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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 67
Fair value journal entries, trading investments
The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $42 per share.
a. Journalize the entries to acquire the investment on February 24 and record the adjustment to fair value on December 31, Year 1.
b. How is the unrealized gain or loss for trading investments reported on the financial statements
The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $42 per share.
a. Journalize the entries to acquire the investment on February 24 and record the adjustment to fair value on December 31, Year 1.
b. How is the unrealized gain or loss for trading investments reported on the financial statements
Explanation
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a. Fair value journal entries, trading i...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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