Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non- trading. The cost and fair value of each category at December 31, 2020, were as follows. Trading securities Nokn-trading securities Fair Value ¥96,500 ¥85,000 ¥59,500 $64,000 Cost Unrealized Gain (Loss) ¥(11,500 ) ¥4,500 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value Adjustment-Non-Trading account had a credit balance of ¥6,200. Prepare the required journal entries for each group of securities for December 31, 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non-
trading. The cost and fair value of each category at December 31, 2020, were as follows.
Trading securities
Nokn-trading securities
Cost
¥96,500
¥59,500
Fair Value
¥85,000
$64,000
Unrealized Gain (Loss)
¥(11,500 )
¥4,500
At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value
Adjustment-Non-Trading account had a credit balance of ¥6,200.
Prepare the required journal entries for each group of securities for December 31, 2020.
Transcribed Image Text:Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non- trading. The cost and fair value of each category at December 31, 2020, were as follows. Trading securities Nokn-trading securities Cost ¥96,500 ¥59,500 Fair Value ¥85,000 $64,000 Unrealized Gain (Loss) ¥(11,500 ) ¥4,500 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value Adjustment-Non-Trading account had a credit balance of ¥6,200. Prepare the required journal entries for each group of securities for December 31, 2020.
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