Springer Inc.carries the following marketable equity securities on its books at December 31,2013,and 2014.All securities were purchased during 2013 and there were no beginning balances in any market adjustment accounts.

The cost method is used in accounting for all investments in securities.
(1)Give the entries necessary to record the valuations for both trading and available-for-sale securities at December 31,2013 and 2014.
(2)What net effect would these valuations have on 2013 and 2014 net income?

Question

Springer Inc.carries the following marketable equity securities on its books at December 31,2013,and 2014.All securities were purchased during 2013 and there were no beginning balances in any market adjustment accounts.
  
The cost method is used in accounting for all investments in securities.
(1)Give the entries necessary to record the valuations for both trading and available-for-sale securities at December 31,2013 and 2014.
(2)What net effect would these valuations have on 2013 and 2014 net income?

Quizplus · Accepted Answer

The Answer of Springer Inc.carries the following marketable equity securities on its books at December 31,2013,and 2014.All securities were purchased during 2013 and there were no beginning balances in any market adjustment accounts.
  
The cost method is used in accounting for all investments in securities.
(1)Give the entries necessary to record the valuations for both trading and available-for-sale securities at December 31,2013 and 2014.
(2)What net effect would these valuations have on 2013 and 2014 net income?