Boise Company’s investments in equity securities at December 31st show total cost of $200,000 and total fair value of $210,000. Boise has less than 20% ownership interest in the equity securities. Prepare the adjusting entry, at year end.

Boise Company’s investments in equity securities at December 31st show total cost of $200,000 and total fair value of $210,000. Boise has less than 20% ownership interest in the equity securities. Prepare the adjusting entry, at year end.

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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Question

Boise Company’s investments in equity securities at December 31^st show total cost of $200,000 and total fair value of $210,000. Boise has less than 20% ownership interest in the equity securities. Prepare the adjusting entry, at year end.

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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