Splendid Company purchased equity securities during 2020 tobe held as investments. The cost and market value of theProblem 15-3 (IAA)investments are:ProblAborigstatemDecember 31, 2020CostTrading securitiesSecurities not held for tradingMarket2,000,0003,000,0002,500,0002,900,000December 31, 2021NoncuTrading securitiesSecurities not held for tradingFinancMarke2,000,0003,000,0002,200,000Marke2,300,000The securities not held for trading are measured at fair valunthrough other comprehensive income by irrevocable electionOtherUnresRequired:An &followPrepare journal entries for 2020 and 2021.

Trading securities are the investments made by an entity with an intention to make profits in the…

be held as investments. The cost and market value of the Splendid Company purchased equity securities during 2020 to investments are: Cost Market December 31, 2020 Trading securities Securities not held for trading 2,000,000 3,000,000 2,500,000 2,900,000 December 31, 2021 Trading securities Securities not held for trading 2,000,000 3,000,000 2,200,000 2,300,000 The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election Required: Prepare journal entries for 2020 and 2021.

be held as investments. The cost and market value of the Splendid Company purchased equity securities during 2020 to investments are: Cost Market December 31, 2020 Trading securities Securities not held for trading 2,000,000 3,000,000 2,500,000 2,900,000 December 31, 2021 Trading securities Securities not held for trading 2,000,000 3,000,000 2,200,000 2,300,000 The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election Required: Prepare journal entries for 2020 and 2021.

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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Topic: Investment Prepare all necessary entries and provide all financial statements
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