E17-6 (Entries for Available-for-Sale and Trading Securities) The following information is available for Barkley Company at December 31, 2014, regarding its investments. Securities 3,000 shares of Myers Corporation Common Stock 1,000 shares of Cole Incorpocited Preferred Stock GD Cost $40,000 25,000 $65,000 Fair Value $48,000 22,000 $70,000 Instructions (a) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading. (b) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as available- for-sale.
E17-6 (Entries for Available-for-Sale and Trading Securities) The following information is available for Barkley Company at December 31, 2014, regarding its investments. Securities 3,000 shares of Myers Corporation Common Stock 1,000 shares of Cole Incorpocited Preferred Stock GD Cost $40,000 25,000 $65,000 Fair Value $48,000 22,000 $70,000 Instructions (a) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading. (b) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as available- for-sale.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Aa8.
Transcribed Image Text:3 E17-6 (Entries for Available-for-Sale and Trading Securities) The following information is available for
Barkley Company at December 31, 2014, regarding its investments.
Securities
3,000 shares of Myers Corporation Common Stock
1,000 shares of Cole Incorposited Preferred Stock
Cost
$40,000
25,000
$65,000
Fair Value
$48,000
22,000
$70,000
Instructions
(a) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.
(b) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as available-
for-sale.
(c) Discuss how the amounts reported in the financial statements are affected by the entries in
(a) and (b).
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