At the end of the first year of operations, the total cost of the trading securities portfolio is $237000. Total fair value is $242000. Thefinancial statements should show an addition to cost of the fair value adjustment andO a realized gain of $5000 in the statement of comprehensive income.a realized gain of $5000 in "Other revenues and gains," on the income statement.O an unrealized gain of $5000 in the stockholders' equity section of the balance sheet.O an unrealized gain of $5000 in "Other revenues and gains," on the income statementD

Trading securities are those securities which are held by the entity sell it within short period of…

At the end of the first year of operations, the total cost of the trading securities portfolio is $237000. Total fair value is $242000. The financial statements should show an addition to cost of the fair value adjustment and O a realized gain of $5000 in the statement of comprehensive income. O a realized gain of $5000 in "Other revenues and gains," on the income statement. O an unrealized gain of $5000 in the stockholders' equity section of the balance sheet. O an unrealized gain of $5000 in "Other revenues and gains," on the income statement D

At the end of the first year of operations, the total cost of the trading securities portfolio is $237000. Total fair value is $242000. The financial statements should show an addition to cost of the fair value adjustment and O a realized gain of $5000 in the statement of comprehensive income. O a realized gain of $5000 in "Other revenues and gains," on the income statement. O an unrealized gain of $5000 in the stockholders' equity section of the balance sheet. O an unrealized gain of $5000 in "Other revenues and gains," on the income statement D

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Indicate the statement presentation of each class of securities and any related unrealized gain (loss) accounts.
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Subject: acounting
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Yankton Company began the year without an investment portfolio. During the year, it purchased investments classified as trading securities at a cost of $13,000. At the end of the year, the market value of the securities was $11,000. Yankton Company's financial statements for the current year should show Ca. no loss on the income statement, net trading securities of $11,000, and an unrealized loss of $2,000 as a stockholders' equity adjustment on the balance sheet b. no loss on the income statement and net trading securities of $13,000 on the balance sheet Cc. a loss of $2,000 on the income statement and net trading securities of $13,000 on the balance sheet Od. a loss of $2,000 on the income statement and temporary investments of $11,000 on the balance sheet
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