At January 1, 2010, the available-for-sale securities portfolio held by Howe Corporation consisted of the following investments:
1. 2,500 shares of Nyland common stock purchased for $42 per share.
2. 1,500 shares of Gregg common stock purchased for $60 per share.
At December 31, 2010, the market values per share were Nyland $36 and Nyland $68.
Instructions
(a) Prepare a schedule showing the cost and fair value of the portfolio at December 31, 2010.
(b) Prepare the adjusting entry to report the portfolio at fair value at December 31, 2010.

Question

Quizplus · Accepted Answer

The Answer of At January 1, 2010, the available-for-sale securities portfolio held by Howe Corporation consisted of the following investments:
1. 2,500 shares of Nyland common stock purchased for $42 per share.
2. 1,500 shares of Gregg common stock purchased for $60 per share.
At December 31, 2010, the market values per share were Nyland $36 and Nyland $68.
Instructions
(a) Prepare a schedule showing the cost and fair value of the portfolio at December 31, 2010.
(b) Prepare the adjusting entry to report the portfolio at fair value at December 31, 2010.

At January 1, 2010, the Available-For-Sale Securities Portfolio Held by Howe