At December 31,2018,Laconia Industries' portfolio of investments in available for sale marketable securities consisted of the following: (a. )Illustrate the presentation of marketable securities and unrealized holding gain (or loss)in Laconia's financial statements at December 31,2018.Indicate the financial statement and section in which each item appears.
(b. )Assume that on March 15,2019,Laconia made the following sales of securities:
(1)Sold 5,000 shares of its investment in Crown,Inc. ,at a price of $20 per share.
(2)Sold 1,000 shares of its investment in Plastic Dots at a price of $45 per share.
Compute the gain or loss recognized in Laconia's 2019 income statement for each sale:
(1).Sale of 5,000 shares of Crown: $________Gain/Loss
(2).Sale of 1,000 shares of Plastic Dots: $________Gain/Loss
(c. )At December 31,2019,the market values of these stocks are: Crown,$21 per share;Plastic Dots,$42 per share.Complete the following schedule showing cost and current market value of securities owned by Laconia at the end of 2019. (d. )Illustrate the presentation of marketable securities and unrealized holding gain (or loss)in Laconia's financial statements at December 31,2019.(Follow same format as in part a. )

Question

At December 31,2018,Laconia Industries' portfolio of investments in available for sale marketable securities consisted of the following:  (a. )Illustrate the presentation of marketable securities and unrealized holding gain (or loss)in Laconia's financial statements at December 31,2018.Indicate the financial statement and section in which each item appears.
(b. )Assume that on March 15,2019,Laconia made the following sales of securities:
(1)Sold 5,000 shares of its investment in Crown,Inc. ,at a price of $20 per share.
(2)Sold 1,000 shares of its investment in Plastic Dots at a price of $45 per share.
Compute the gain or loss recognized in Laconia's 2019 income statement for each sale:
(1).Sale of 5,000 shares of Crown: $________Gain/Loss
(2).Sale of 1,000 shares of Plastic Dots: $________Gain/Loss
(c. )At December 31,2019,the market values of these stocks are: Crown,$21 per share;Plastic Dots,$42 per share.Complete the following schedule showing cost and current market value of securities owned by Laconia at the end of 2019.  (d. )Illustrate the presentation of marketable securities and unrealized holding gain (or loss)in Laconia's financial statements at December 31,2019.(Follow same format as in part a. )

Quizplus · Accepted Answer

The Answer of At December 31,2018,Laconia Industries' portfolio of investments in available for sale marketable securities consisted of the following:  (a. )Illustrate the presentation of marketable securities and unrealized holding gain (or loss)in Laconia's financial statements at December 31,2018.Indicate the financial statement and section in which each item appears.
(b. )Assume that on March 15,2019,Laconia made the following sales of securities:
(1)Sold 5,000 shares of its investment in Crown,Inc. ,at a price of $20 per share.
(2)Sold 1,000 shares of its investment in Plastic Dots at a price of $45 per share.
Compute the gain or loss recognized in Laconia's 2019 income statement for each sale:
(1).Sale of 5,000 shares of Crown: $________Gain/Loss
(2).Sale of 1,000 shares of Plastic Dots: $________Gain/Loss
(c. )At December 31,2019,the market values of these stocks are: Crown,$21 per share;Plastic Dots,$42 per share.Complete the following schedule showing cost and current market value of securities owned by Laconia at the end of 2019.  (d. )Illustrate the presentation of marketable securities and unrealized holding gain (or loss)in Laconia's financial statements at December 31,2019.(Follow same format as in part a. )

At December 31,2018,Laconia Industries' Portfolio of Investments in Available for Sale