The following information is available for Barkley Company at December 31, 2020, regarding its investments. Securities Cost Fair Value 3,000 shares of Myers Corporation common stock $40,000 $48,000 1,000 shares of Cole Incorporated preferred stock 25,000 22,000 $65,000 $70,000 Instructions a. Prepare the adjusting entry (if any) for 2020, assuming no balance in the Fair Value Adjustment account at January 1, 2020. Neither of Barkley's investments result in significant influence. b. Discuss how the amounts reported in the financial statements are affected by the entries in (a).
The following information is available for Barkley Company at December 31, 2020, regarding its investments. Securities Cost Fair Value 3,000 shares of Myers Corporation common stock $40,000 $48,000 1,000 shares of Cole Incorporated preferred stock 25,000 22,000 $65,000 $70,000 Instructions a. Prepare the adjusting entry (if any) for 2020, assuming no balance in the Fair Value Adjustment account at January 1, 2020. Neither of Barkley's investments result in significant influence. b. Discuss how the amounts reported in the financial statements are affected by the entries in (a).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is available for Barkley Company at December 31, 2020, regarding its investments.
| Securities | Cost | Fair Value | ||
| 3,000 shares of Myers Corporation common stock | $40,000 | $48,000 | ||
| 1,000 shares of Cole Incorporated |
25,000 | 22,000 | ||
| $65,000 | $70,000 |
Instructions
a. Prepare the
b. Discuss how the amounts reported in the financial statements are affected by the entries in (a).
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