Price Corporation has the following trading portfolio of stock investments as of December 31, 2010.
On January 22, 2011, Price Corporation sold security C for $31,000.
Instructions
(a) Prepare the adjusting entry for Price Corporation on December 31, 2010, to report the portfolio at fair value.
(b) Indicate the balance sheet and income statement presentation of the fair value data for Price Corporation at December 31, 2010.
(c) Prepare the journal entry for the 2011 sale.

Question

Price Corporation has the following trading portfolio of stock investments as of December 31, 2010.  
On January 22, 2011, Price Corporation sold security C for $31,000.
Instructions
(a) Prepare the adjusting entry for Price Corporation on December 31, 2010, to report the portfolio at fair value.
(b) Indicate the balance sheet and income statement presentation of the fair value data for Price Corporation at December 31, 2010.
(c) Prepare the journal entry for the 2011 sale.

Quizplus · Accepted Answer

The Answer of Price Corporation has the following trading portfolio of stock investments as of December 31, 2010.  
On January 22, 2011, Price Corporation sold security C for $31,000.
Instructions
(a) Prepare the adjusting entry for Price Corporation on December 31, 2010, to report the portfolio at fair value.
(b) Indicate the balance sheet and income statement presentation of the fair value data for Price Corporation at December 31, 2010.
(c) Prepare the journal entry for the 2011 sale.

Price Corporation Has the Following Trading Portfolio of Stock Investments