Shallot Company has the following data at December 31 2017 for its securities. $$\begin{array} { l r r }
\underline{\text { Securities }} & \underline { \text { Cost } } & \underline{ \text { Fair Value } } \
\text { Trading } & \$ 90,000 &\$93,000\
\text { Available-for-sale }&74,000&68,000
\end{array}$$ Instructions
(a) Prepare the adjusting entries to report the securities at fair value.
(b) Indicate the statement presentation of the related unrealized gain (loss) accounts for each class of securities.

Question

Shallot Company has the following data at December 31 2017 for its securities. $$\begin{array} { l r r } 
 \underline{\text { Securities }} & \underline { \text { Cost } } & \underline{ \text { Fair Value } } \
\text { Trading } & \$ 90,000 &\$93,000\
\text { Available-for-sale }&74,000&68,000
\end{array}$$ Instructions
(a) Prepare the adjusting entries to report the securities at fair value.
(b) Indicate the statement presentation of the related unrealized gain (loss) accounts for each class of securities.

Quizplus · Accepted Answer

The Answer of Shallot Company has the following data at December 31 2017 for its securities. $$\begin{array} { l r r } 
 \underline{\text { Securities }} & \underline { \text { Cost } } & \underline{ \text { Fair Value } } \
\text { Trading } & \$ 90,000 &\$93,000\
\text { Available-for-sale }&74,000&68,000
\end{array}$$ Instructions
(a) Prepare the adjusting entries to report the securities at fair value.
(b) Indicate the statement presentation of the related unrealized gain (loss) accounts for each class of securities.

Shallot Company Has the Following Data at December 31 2017