Bridgeport Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks.Security Quantity Cost Fair ValueLindsay Jones, Inc. 1,000 shares $15,100 $21,100Poley Corp. 2,000 shares 39,900 41,800Arnold Aircraft 2,000 shares 72,500 60,300 Totals $127,500 $123,200What should be reported on Bridgeport’s December 31, 2020, balance sheet relative to these securities? What should be reported on Bridgeport’s 2020 income statement?

Decrease in Fair Value = Total Cost - Total Fair Value Decrease in Fair Value = 127500 - 123200…

Answered: Bridgeport Corp. invested its excess…

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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Bridgeport Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks.

Security	Quantity		Cost	Fair Value
Lindsay Jones, Inc.	1,000 shares		$15,100	$21,100
Poley Corp.	2,000 shares		39,900	41,800
Arnold Aircraft	2,000 shares		72,500	60,300
		Totals	$127,500	$123,200

What should be reported on Bridgeport’s December 31, 2020, balance sheet relative to these securities? What should be reported on Bridgeport’s 2020 income statement?

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